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jeromenc
Apr 16, 2007, 08:18 PM
Firm has a debt issue outstanding with 12 yrs to mature that is quoted at 105 percent of face value. The issue makes semiannual payments and has embedded cost of 8 percent annually. What is the company's pre tax cost of debtand what is the company's after tax cost of debt?

Biswajit1301
Sep 29, 2009, 12:51 AM
Firm has a debt issue outstanding with 12 yrs to mature that is quoted at 105 percent of face value. The issue makes semiannual payments and has embedded cost of 8 percent annually. What is the company's pre tax cost of debtand what is the company's after tax cost of debt?

Biswajit1301
Sep 29, 2009, 12:52 AM
Firm has a debt issue outstanding with 12 yrs to mature that is quoted at 105 percent of face value. The issue makes semiannual payments and has embedded cost of 8 percent annually. What is the company's pre tax cost of debtand what is the company's after tax cost of debt?

morgaine300
Sep 30, 2009, 10:40 PM
Please start your own thread, even when it's the same question, instead of digging up old threads and tacking onto them.

Also please see the guidelines for posting homework problems:
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