Question

In: Finance

Himiny's Cricket Farm Issued a 28-year, 13 percent semiannual bond 3 years ago. The bond currently...

Himiny's Cricket Farm Issued a 28-year, 13 percent semiannual bond 3 years ago. The bond currently sells for 100 percent of its face value. The company's tax rate is 33 percent. What is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Himiny's Cricket Farm Issued a 25-year, 16 percent semiannual bond 3 years ago. The bond currently...
Himiny's Cricket Farm Issued a 25-year, 16 percent semiannual bond 3 years ago. The bond currently sells for 89 percent of its face value. The company's tax rate is 33 percent. What is the pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual bond four years ago. The bond currently...
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual bond four years ago. The bond currently sells for 98 percent of its face value. The company’s tax rate is 25 percent. What is the aftertax cost of debt? Select one: A. 7.68% B. 3.61% C. 7.21% D. 5.41% E. 5.89%
Pearce’s Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The bond currently sells...
Pearce’s Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The bond currently sells for 95% of its face value. The company’s tax rate is 35%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Pre-tax cost of debt             % b. What is the after-tax cost of debt? (Do not round intermediate calculations. Round the final...
Jiminy’s Cricket Farm issued a 30-year, 6 percent semiannual coupon bond 4 years ago. The bond...
Jiminy’s Cricket Farm issued a 30-year, 6 percent semiannual coupon bond 4 years ago. The bond currently sells for 105 percent of its face value. The company’s tax rate is 23 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 67 percent of par. A....
Jiminy’s Cricket Farm issued a 30-year, 5 percent semiannual coupon bond 6 years ago. The bond...
Jiminy’s Cricket Farm issued a 30-year, 5 percent semiannual coupon bond 6 years ago. The bond currently sells for 106 percent of its face value. The company’s tax rate is 25 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue, a zero coupon bond with 10 years left to maturity; the book value of this issue is $45 million, and the bonds sell for 73 percent of par. a....
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 4 years ago. The bond...
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 4 years ago. The bond currently sells for 104 percent of its face value. The company’s tax rate is 23 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue, a zero coupon bond with 10 years left to maturity; the book value of this issue is $30 million, and the bonds sell for 58 percent of par. a....
Jiminy’s Cricket Farm issued a 16-year, 6 percent semiannual coupon bond 2 years ago. The bond...
Jiminy’s Cricket Farm issued a 16-year, 6 percent semiannual coupon bond 2 years ago. The bond currently sells for 91 percent of its face value. The company’s tax rate is 38 percent. The book value of the debt issue is $40 million. In addition, the company has a second debt issue, a zero coupon bond with 11 years left to maturity; the book value of this issue is $30 million, and the bonds sell for 50 percent of par. a....
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 4 years ago. The bond...
Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 4 years ago. The bond currently sells for 104 percent of its face value. The company’s tax rate is 23 percent. a. What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a...
Jiminy’s Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond...
Jiminy’s Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond currently sells for 96 percent of its face value. The company’s tax rate is 21 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $30 million, and the bonds sell for 67 percent of par. What...
Jiminy’s Cricket Farm issued a 15-year, 6 percent semiannual coupon bond 4 years ago. The bond...
Jiminy’s Cricket Farm issued a 15-year, 6 percent semiannual coupon bond 4 years ago. The bond currently sells for 93 percent of its face value. The company’s tax rate is 23 percent. a. What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT