Sh13Please help me. Solution Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.Face Value$BondCoupon Rate8.70%6.908.408.90Aftertax cost of debtPrice Quote106.793.7105.595.35.13 %Maturity7 years10 years17.5 years27 yearsIf 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., 32.16.26,000,00032,000,00037,000,000.52,000,000

After tax cost to debt : After tax cost of debt = 6.45%

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sh13

Please help me.

Solution

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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