Oberon, Inc. has a $45 million (face value) 8-year bond issue selling for 98 percent of par that pays an annual coupon of 8.10 What would be Oberon's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt %
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- Oberon, Incorporated has a $30 million (face value) 8-year bond issue selling for 97 percent of par that pays an annual coupon of 8.30 percent. What would be Oberon's before-tax component cost of debt? Note: Round your answer to 2 decimal places. Cost of debt Explanation Solve {$970=$83.00×[1-1/(1+iD)^8/]+iD$1,000(1+iD)8} for iD Yields iD=0.088388, or 8.84%. \table[[A,B,C,],[1,Maturity,8,],[2,Price,97%,$29,100,000.00Oberon, Inc., has a $45 million (face value) 12-year bond issue selling for 96 percent of par that pays an annual coupon of 8.45 percent, What would be Oberon's before-tax component cost of debt? (Round your answer to 2 declmal places.) Cost of debt 96 Mc 2Type here to search 五 7734LL KatyDid Clothes has a $140 million (face value) 20-year bond issue selling for 103 percent of par that carries a coupon rate of 14 percent, paid semiannually. What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt Type here to search F1 F2
- Oberon, Inc. has a $20 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.25 percent. What would be Oberon's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt %KatyDid Clothes has a $110 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 8 percent. paid semiannually What would be Katydid's before-tax component cost of debt? Note: Round your answer to 2 decimal places. Cost of debt %KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a coupon rate of 11 percent, paid semiannually. What would be Katydid's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt %
- a. Using the cost-of-debt approximation formula, determine the pre-tax cost for a bond that sells at $ 925 par value and that pays a coupon of $ 85 for 20 years. The flotation costs are $ 5 per bond. You will have to show the counts. b. For the above case, calculate the cost of debt after taxes if the company's tax liability is 40%. You will have to show the counts.K The outstanding debt of Berstin Corp. has eight years to maturity, a current yield of 9%, and a price of $80. What is the pretax cost of debt if the tax rate is 30%. A. 7.5% B. 10.8 % OC. 6.5 % OD. more information neededWhat are the market interest rate on Coleman's debt and its component cost of debt? Coupon rate= 12% Coupons per year = 2 Years to maturity = 15 Price = $1,153.72 Tax rate = 40% The Market interest rate of debt is 10% (5% * 2) , Can you give me a step by step computation (manually) of the 5% rate? Thank you so much!
- Telecom Systems can issue debt yielding 7 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt? (Input your answer as a percent rounded to 2 decimal places.)26)PWCV, Inc. has bonds outstanding that mature in 6 years, pay interest annually, and have a coupon rate of 4.8 percent. These bonds have a face value of $1,000 and a current market price of $1,047.52. What is the company's aftertax cost of debt if its tax rate is 18 percent? Group of answer choices 3.2% 3.9% 4.1% 4.8%3. Jones Cricket Institute issued a 30 year, 8 percent semi-annual bond 3 year ago. The bond currently sells for 93 percent of its face value. The Company's tax rate is 35%. a. What is the pre-taxed cost of debt? b. What is the after tax cost of debt? c. Which is more relevant, the pre-tax or the after- tax cost of debt? Why? In question 3 above, suppose the book value of the debt issues is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 10 years to mature. The book value of this issue is $35 million and the bond sell for 57 percent of par. a. What is the company's total book value of debt? b. The total market value? c. What is your best estimate of the after-tax cost of debt now?|