What is its percentage after-tax cost of debt

Assignment Help Financial Management
Reference no: EM131523514

Micro Spinoffs Inc. issued 10-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,160. If the firm’s tax bracket is 35%, what is its percentage after-tax cost of debt? Assume a face value of $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131523514

Questions Cloud

Sovereign bond issued by the government of kings landing : Sovereign Bond issued by the government of ‘King’s Landing’.
Explain the impact of federal standards on local response : Then consider the impact of federal standards on local response. Reflect on how federal and/or local standards for emergency management differ.
Identify and describe the stages of team development : Identify and describe the stages of team development. How might stronger team skills benefit you? How might you use teamwork skills in your job
Generate list of stated correspondent to far western states : Using the cigconsump dataset, generate a list of the stated correspondent to the far western states: Washington, Oregon. California Nevada, Utah Idaho.
What is its percentage after-tax cost of debt : If the firm’s tax bracket is 35%, what is its percentage after-tax cost of debt?
How that leadership was effective in overcoming resistance : Describe the change and analyze how that leadership was effective in overcoming resistance and implementing change. Support your assertions with cited research.
Identify motivating factors that prompted that development : The Public Health Service originated in 1798 as the Marine Hospital Service. Identify two (2) motivating factors that prompted that development
What is the value of the multiplier : In a basic Keynesian macroeconomic model it is assumed that Y = C + I where I = 820 and C = 60 + 0.8Y.
Describe the natural disaster that might occur in community : Describe the natural disaster that might occur in this community. Describe any subsequent incidents that might be spawned or cascade from the initial incident.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd