Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $1,863 and matures in 21 years. The par value is $2,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt? 4.67% 3.67% 3.43% 4.07% 5.80%
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Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $1,863 and matures in 21 years. The par value is $2,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt? 4.67%
3.67%
3.43%
4.07%
5.80%
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- Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $1,912 and matures in 16 years. The par value is $2,000 and the company's tax rate is 24 percent. What is the company's aftertax cost of debt? Multiple Choice 3.20% 4.81% 5.21 % 3.43 % 5.52%ojo Mining has a bond outstanding that sells for $2,084 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 6.34 percent. The par value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt? Please avoid answers in image thank youBeckham Corporation has semiannual bonds outstanding with 15 years to maturity and the bonds are currently priced at $846.16. If the bonds have a coupon rate of 8.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%? 5.283% 6.868% 10.401% 7.655%
- Galvatron Metals has a bond outstanding with a coupon rate of 6.5 percent and semiannual payments. The bond currently sells for $951 and matures in 23 years. The par value is $1,000 and the company's tax rate is 25 percent. What is the company's aftertax cost of debt? Multiple Choice О 5.20% 5.50% 4.80% 3.23% 3.46%Mojo Mining has a bond outstanding that sells for $1,052 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 5.86 percent. The par value is $1,000. If the company's tax rate is 39 percent what is the aftertax cost of debt?Beckham Corporation has semiannual bonds outstanding with nine years to maturity that are currently priced at $894.08. If the bonds have a coupon rate of 5 percent, then what is the after- tax cost of debt for Beckham if its marginal tax rate is 27 percent? Complete the calculation as is done on Wall Street. 4.8% 2.4% 3.14% 6.5% Onone of these
- Years ago, Bustle Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $1,005, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? MUST SHOW WORK O 5.04% O 5.02% 5.59% 6.29%Hydro Systems has bonds outstanding with a face value of $1,000, 13 years to maturity, and a coupon rate of 6.5 percent, paid semi-annually. What is the company's pretax cost of debt if the bonds currently sell for $1,056? 6.42 percent 5.55 percent 5.36 percent 4.71 percent 5.88 percentSave & Exit Galvatron Metals has a bond outstanding with a coupon rate of 6.2 percent and semiannual payments. The bond currently sells for $948 and matures in 24 years. The par value is $1,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt? Multiple Choice 4.31% 3.98% 3.10% 3.32% 4.57%
- Several years ago a company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon. The bond currently sells for $875, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation? 4.98% 4.58% 7.00% 4.92% 8.30%Beckham Corporation has semiannual bonds outstanding with nine years to maturity that are currently priced at $794.08. If the bonds have a coupon rate of 6 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 27 percent? Complete the calculation as is done on Wall Street. none of these 7.06% 9.45% 7.28% 6.89%Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation? a. 5.73% b. 6.35% c. 6.03% d. 6.67% e. 5.44%