Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table bel Bond 1 Coupon Rate 8.70% Price Quote 106.2 Maturity Face Value $ 7 years 10 years 17.5 years 27 years 21,000,000 37,000,000 42,000,000 57,000,000 234 6.70 8.40 8.90 94.2 105.0 94.8 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Aftertax cost of debt 5.14 %

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table bel Bond 1 Coupon Rate 8.70% Price Quote 106.2 Maturity Face Value $ 7 years 10 years 17.5 years 27 years 21,000,000 37,000,000 42,000,000 57,000,000 234 6.70 8.40 8.90 94.2 105.0 94.8 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Aftertax cost of debt 5.14 %

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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