Charter Corp. has issued 2,500 debentures with a total principal value of $1,500,000. The bonds have a coupon interest rate of 7%. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter’s total interest expense per year associated with this bond issue? c. Assuming that Charter is in a 35% corporate tax bracket, what is the company’s net after-tax interest cost associated with this bond issue?

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 the question 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?

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?             Answer     %   b)      What is the after tax cost of debt?               Answer     %   c)      Which is more relevant, the pre-tax or the after- tax cost of debt? Why?    Answer         In the question 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. What is the company’s total book value of debt?               $  Answer      The total market value?                                                       $  Answer     What is your best estimate of the after-tax cost of debt now?      Answer     %

Charter Corp. has issued 1,554 debentures with a total principal value of ​$1,554,000. The bonds have a coupon interest rate of 9​%. a.  What dollar amount of interest per bond can an investor expect to receive each year from​ Charter? b.  What is​ Charter's total interest expense per year associated with this bond​ issue?   c.  Assuming that Charter is in a 39​% corporate tax​ bracket, what is the​ company's net​ after-tax interest cost associated with this bond​ issue?

Jones Cricket Institute issued a 30 year, 8 percent semiannual bond 3 years 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 the question 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 sells 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?

Bonds issued last year by Gowen Inc. carried a coupon rate of 7%. Bonds issued today by Gowen Inc. would carry a coupon rate of 9%. Assume a corporate tax rate of 40%.What is the after tax cost of debt?

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $925. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?   Select one: a. 3.74% b. 4.45% c. 5.29% d. 6.78%   . Please show how you got your answer. Thank you

Beckham 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%

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price of $900. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? a.5.29% b.4.45% c.3.81% d.6.78%

Charter Corp. issued1,662 debentures with a​ $1,000 par value and  6% coupon rate.   a.  What dollar amount of interest per bond can an investor expect to receive each year from​ Charter?   b.  What is​ Charter's total interest expense per year associated with this bond​ issue?     c.  Assuming that Charter pays a 21​% corporate​ tax, what is the​ company's net​ after-tax interest cost associated with this bond​ issue?