### Information about calculating cost of debt

Assignment Help Finance Basics
##### Reference no: EM1334234

In an effort to raise money, a company sold a bond that now has 20 years of maturity. The bond has a 7% annual coupon which is paid quarterly and it now sells at a price of 1103.58. The bond has a par value of \$1000 and can't be called. If the companies tax rate is now 40%, what component of debt should be used in the WACC calculations?

### Write a Review

#### Computation of hpr listed price of a bond and value

Computation of HPR listed price of a bond and value of put option and You put up \$50 at the beginning of the year for an investment

#### Outcome on the accounting equation on payment of interest

Outcome on the accounting equation on payment of interest on the loan payable in due and in advance

#### Computation of new price of bonds

Computation of new price of bonds and the market interest rate on these bonds has dropped to 6%

#### Compute of the financial performance of the company

Compute of the financial performance of the company with the help of the ratios and industry average

#### The group of companies, choose "google"

The composition of the group; namely the subsidiaries, associates, any joint ventures and any other significant investments  Why did the parent entity have to prepare consol idated financial statements when the subsidiary company is a separate legal..

#### Statement of cash flows that describe the change

Statement of cash flows that describe the change that occurred in cash and you may assume that the change in each balance sheet amount is due to a single event

#### Estimated retained earnings at ending of year

Earnings after tax will total= \$23,400, and MP will pay= \$12,400 in dividends. Write down estimated retained earnings at ending of next year?

#### Superannuation-defined benefit

Write down difference between inflation and the 'time value of money'? Please describe what issues relating to concept of 'time value of money' might be significant when choosing between a defined benefit or an accumulation super fund.

#### Financial basics to be considered for short term borrowing

What financial basics should be considered when determining the most appropriate amount of short term borrowing

#### Objective type question bond yield and valuation

Objective type Question Bond Yield and Valuation and Identify the choice that best completes the statement or answers the question

#### Computation of multiple cash flows for a year

Computation of multiple cash flows for a year and Future value of a \$1 annuity when R= 8% compounded annually and t=200

#### Shareholders if xyz company has voted in favor of a buyout

The shareholders if XYZ Company has voted in favor of a buyout offer from ABC Corporation. Information about each firm is given here: