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    jeromenc's Avatar
    jeromenc Posts: 1, Reputation: 1
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    #1

    Apr 16, 2007, 08:18 PM
    Cost of Debt Calculation
    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's Avatar
    Biswajit1301 Posts: 2, Reputation: 1
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    #2

    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's Avatar
    Biswajit1301 Posts: 2, Reputation: 1
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    #3

    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    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:
    Ask Me Help Desk - Announcements in Forum : Homework Help
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