What is after-tax cost of debt

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1. ?Rover's Dog Care has outstanding debt currently selling for $870 per bond. It matures in 16 years, pays interest semiannually, and has a coupon rate of 12%. If par is $1,000 and the tax rate is 35%, what is the after-tax cost of debt?  

2. A disadvantage of the corporate form of business entity is

a. single taxation of dividends

b. unlimited liability for stockholders

c. corporations are subject to more governmental regulations

d. the ease of transfer of ownership

Reference no: EM131916563

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