Waller, Inc.
jasperfork11 (Not rated)
(Not rated)
Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 7 percent annually (note: this means that the coupon rate is 7% APR). The company's pretax cost of debt (as an APR) is ______%? If the tax rate is 35 percent, the aftertax cost of debt (as an APR) is_______%?
- 9 years ago
Waller, Inc.
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- debt_cost_-_waller.docx