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0 0 -0 93.7 105.5 95.3 10 years 17.5 years 27 years 26,000,000 32,000,000 37,000,000 52,000,000 22 percent, what is the aftertax cost of the company's debt? mediate calculations and enter your answer as a percent rounded to 2 decimal places, e.

0 0 -0 93.7 105.5 95.3 10 years 17.5 years 27 years 26,000,000 32,000,000 37,000,000 52,000,000 22 percent, what is the aftertax cost of the company's debt? mediate calculations and enter your answer as a percent rounded to 2 decimal places, e.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Face Value $ Bond Coupon Rate 8.70% 6.90 8.40 8.90 Aftertax cost of debt Price Quote 106.7 93.7 105.5 95.3 5.13 % Maturity 7 years 10 years 17.5 years 27 years If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 26,000,000 32,000,000 37,000,000. 52,000,000
Transcribed Image Text:Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Face Value $ Bond Coupon Rate 8.70% 6.90 8.40 8.90 Aftertax cost of debt Price Quote 106.7 93.7 105.5 95.3 5.13 % Maturity 7 years 10 years 17.5 years 27 years If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 26,000,000 32,000,000 37,000,000. 52,000,000
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