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Wk10 Q6 Calculating Cost of Debt Jiminy's Cric...

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Wk10 Q6 Calculating Cost of Debt Jiminy's Cricket Farm issued a 30-year, 8 percent semiannual bond 7 years ago. The bond currently sells for 95 percent of its face value. The book value of the debt issue is $80 million. The company's tax rate is 35 percent. In addition, the company has a second debt issue on the market, a zero coupon bond with seven years left to maturity; the book value of this issue is $35 million, and the bonds sell for 61 percent of par. The company's total book value of debt is $___. Its total market value of debt is $___. (Enter your answers in dollars, not millions of dollars, e.g, $1,234,567.) Your best estimate of the aftertax cost of debt is ___ percent. (Do not include the percent sign (%). Round your answer to 2 decimal places.(e.g., 32.16)),Please return answer in excel. Thank you.

 

Paper#5385 | Written in 18-Jul-2015

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