Avicorp has a$ 14.5million debt issue outstanding

Avicorp has a$ 14.5million debt issue outstanding

Question # 00507039 Posted By: dr.tony Updated on: 04/02/2017 02:42 AM Due on: 04/02/2017
Subject General Questions Topic General General Questions Tutorials:
Question
Dot Image

Avicorp has a$ 14.5million debt issue outstanding, with a5.8 %coupon rate. The debt has semi-annual coupons, with the next coupon is due in six months. The debt matures in five years. It is currently priced at96 %of par value.

a. What is Avicorp's pre-tax cost of debt? (Round to four decimal places as needed.)

b. If Avicorp faces a 30 % tax rate, what is its after-tax cost of debt?

Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. dr.tony
    Tutorial # 00503771 Posted By: dr.tony Posted on: 04/02/2017 02:43 AM
    Puchased By: 3
    Tutorial Preview
    The solution of Avicorp has a$ 14.5million debt issue outstanding...
      Get the Solution
    Attachments
    10433736.docx (16.08 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    gi...bb Rating Cooperative and polite professionals 06/02/2018
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa