$80 annual coupon and "What is the after-tax cost of debt for a company that has $1000 par value bonds issued that pay an have 5 years to maturity if their current price is 95% of par? The company's tax rate is 40%. (There's rounding so pick the closest) O 5.2% O 6.8 % O 6.4% 0 6.0% O 5.6%
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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