Ying Import has several bond issues outstanding, each making semiannual interestpayments. The bonds are listed in the following table.CouponBondRatePrice QuoteMaturityFace Value14.00%103.185 years45,000,00040,000,00050,000,00065,000,000112.808 years15.5 years25 years26.1035.30107.4544.90102.75If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt?(Do not round intermediate calculations and enter your answer as a percent roundedto 2 decimal places, e.g.., 32.16.)Cost of debt%

The question is based on the concept of Financial Management.

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Rate Bond Price Quote Maturity Face Value 24 45,000,000 40,000,000 50,000,000 65,000,000 1 4.00% 103.18 5 years 8 years 15.5 years 25 years 2 6.10 112.80 3 5.30 107.45 4 4.90 102.75 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Rate Bond Price Quote Maturity Face Value 24 45,000,000 40,000,000 50,000,000 65,000,000 1 4.00% 103.18 5 years 8 years 15.5 years 25 years 2 6.10 112.80 3 5.30 107.45 4 4.90 102.75 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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 following table. Coupon Bond Rate Price Quote Maturity Face Value $ 1 6.4% 106.36 6 years 44,000,000 234 7.9 114.92 9 years 39,000,000 7.6 113.47 16.5 years 59,000,000 7.2 102.71 26 years 66,000,000 If the corporate tax rate is 24 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of debt %
E2
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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.50% 106.0 5 years $19,000,000 2 6.50 94.4 8 years 39,000,000 3 8.20 104.8 15.5 years 44,000,000 4 8.70 94.6 25 years 59,000,000 If the corporate tax rate is 25 percent, what is the aftertax cost of the company’s debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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