XYZ Co. issues $1,000 par value, 5.6% annual coupon bonds, with 15 years to maturity. The company sells the bonds for $699. Find the after-tax cost of debt assuming a tax rate of 35 %. 3.55% 4.73% 6.13% 4.30%
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- Bond Yield and After-Tax Cost of Debt A companys 6% coupon rate, semiannual payment, 1,000 par value bond that matures in 30 years sells at a price of 515.16. The companys federal-plus-state tax rate is 40%. What is the firms after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.)ABC Co. can issue P1,000 par value bond that pays P100 per year in interest at a price of P980. The bond will have a 5-year life. The firm is in a 35% tax bracket. What is the after-tax cost of debt? A. 5.87% B. 6.8% C. 9.03% D. 9.14%5 years ago, Barton Industries issued 25-year nuncallable, semiamual bonds with $1,000 face value and a 5%. coupan, semianual payment ($25 payment every months). The bonds currently sell for $894.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? % ildes 1 the a AG ect that
- Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $950 and matures in 24 years. The par value is $1,000 and the company's tax rate is 21 percent. What is the company's after-tax debt cost? Group of answer choices 4.34% 3.78% 3.41% 5.39% 3.19%Dengar1. ACT Inc. has a $1,000 (face value), 20 year bond issue selling for $1,229.40 that pays an annual coupon of 8.0 percent. Their marginal tax rate is 25%. a. What would be BAT's current before-tax component cost of debt? a. What would be BAT's current after-tax component cost of debt?
- The following is the information on debt issued by Huntington Power Co. Calculate the after-tax cost of debt for the firm. Debt: 4 percent coupon paid semiannually, $1,000 par value, 15 years to maturity, current market price of the bond is $889.0. Tax rate is 20%.Years ago, Bustle Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $1,005, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? MUST SHOW WORK O 5.04% O 5.02% 5.59% 6.29%Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $1,912 and matures in 16 years. The par value is $2,000 and the company's tax rate is 24 percent. What is the company's aftertax cost of debt? Multiple Choice 3.20% 4.81% 5.21 % 3.43 % 5.52%
- Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $905, and the company’s tax rate is 30%. What is the component after-tax cost of debt for use in the WACC calculation? a. 4.64% b. 6.22% c. 4.33% d. 4.82%Shanken NV issued a 20-year, 12 percent semiannual bond 5 years ago. The bond currently sells for 129 percent of its face value. The company’s tax rate is 35 percent. Assume the face value of the debt is €1,000. What is the after-tax cost of debt? a) 3.844% b) 5.057% c) 8.54% d) 5.55%Galvatron Metals has a bond outstanding with a coupon rate of 6.5 percent and semiannual payments. The bond currently sells for $951 and matures in 23 years. The par value is $1,000 and the company's tax rate is 25 percent. What is the company's aftertax cost of debt? Multiple Choice О 5.20% 5.50% 4.80% 3.23% 3.46%
