Finance
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places.
Homework Answers
| 1 | Face value (FV) | $ 1,600 |
| 2 | Coupon rate | 8.00% |
| 3 | Number of compounding periods per year | 2 |
| 1*2/3 | Interest per period (PMT) | $ 64.00 |
| Bond price (PV) | $ (845.87) | |
| 4 | Number of years to maturity | 20 |
| 5 = 4*3 | Number of compounding periods till maturity (NPER) | 40 |
| Bond yield to maturity | RATE(NPER,PMT,PV,FV)*2 | |
| Bond yield to maturity | 15.84% | |
| (Pre-tax cost of debt) | ||
| Bond yield to maturity | 9.50% | |
| (After-tax cost of debt) | 15.84%*(1-40%) |
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5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and...
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual payment ($45 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. %
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and...
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 6% coupon, semiannual payment ($30 payment every 6 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? Do not round intermediate calculations. Round your answer to two decimal places. %
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face...
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10.2 10.3 Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a...
10.2
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Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 5% coupon, semiannual payment ($25 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $42 per share....
10.02 10.03 Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a...
10.02
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Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 5% coupon, semiannual payment ($25 payment every 6 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? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $40 per share. The stock...
10.2
10.3
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 5% coupon, semiannual payment ($25 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $42 per share....
10.02
10.03
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 10% coupon, semiannual payment ($50 payment every 6 months). The bonds currently sell for $841.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. % Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $51 per...
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,900 face value and a 10% coupon, semiannual payment ($95 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations. 1 % Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $44 per share....
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