Bond 1 234 4 Coupon Rate Price Quote 5.4% 7.0 6.9 6.2 105.16 113.92 112.47 101.71 Maturity 6 years 9 years 16.5 years 26 years Face Value $ 56,000,000 51,000,000 71,000,000 78,000,000 If the corporate tax rate is 21 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g. 32.16.)
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table.
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