Friday
December 19, 2014

Homework Help: finance

Posted by Michelle on Monday, July 15, 2013 at 11:56pm.

Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 12 percent coupon rate and make semiannual coupon payments. In order to sell the issue, the bonds must be underpriced at a discount of 2.5 percent of face value. In addition, the firm would have to pay flotation costs of 2.5 percent of face value. The firm's tax rate is 33 percent. Given this information, the after tax cost of debt for Tangshan Mining would be

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - Nico Trading corporation is considering issuing long-term debt. The ...
Finance - You know that the after-tax cost of debt capital for Bubbles Champagne...
Finance - Debt: 223,000 7.0 percent coupon bonds outstanding, 25 years to ...
finance - Peyton’s Colt Farm issued a 30-year, 7.2 percent semiannual bond 6 ...
Corporate Finance - Avicorp has a $14.3 million debt issue outstanding with a 6....
Finance - Treasury bonds paying an 8% coupon rate with semiannual payments ...
Finance - Filer Manufacturing has 11.6 million shares of common stock ...
Finance - Filer Manufacturing has 11.6 million shares of common stock ...
finance - Suppose Delta Company issued bonds with a 15-year maturity, a Rs. 1,...
Finance - A corporation has bonds on the market with 13.5 years to maturity, a ...

Search
Members