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What is after-tax cost of debt

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1. Tiny Tots has debt outstanding, currently selling for $880 per bond. It matures in 12 years, pays interest annually, and has a 7% coupon rate. Par is $1,000, and the firm's tax rate is 40%. What is the? after-tax cost of debt? The after-tax cost of debt for Tiny Tots is __%.?(Round to two decimal places.)

2. TES, Inc. currently has 700,000 shares of stock outstanding at a market price of $35 a share. The company wants to raise $3 million in a rights offering. The subscription price is $30 a share. One right will be granted for every share of outstanding stock. What is the value of one right?

Reference no: EM131896526

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