Description of this paper

Bedrick has outstanding 10 year noncallable bonds

Description

solution


Question

Bedrick has outstanding 10 year noncallable bonds with a face value of $1000. Current market price is $1495.56 & has a coupon rate of 10%. The tax rate for the company is 35%. The company wants to issue new debt, what would be an estimate for its after-tax cost of debt?;3.06%;2.30%;2.55%;2.93%

 

Paper#34342 | Written in 18-Jul-2015

Price : $24
SiteLock