Homework Help: Finance

Posted by Sally on Monday, November 23, 2015 at 8:02pm. The answer given by Finance - Anonymous , Monday, November 23, 2015 at 8:12pm
Add the tax to the "before tax" to get the answer was not helpful. I am hoping someone can give me a guided answer. Thank you.

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The book value of this debt issue is $103 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $62 million, and it sells for 59 percent of par. The company’s tax rate is 38 percent.

Total book value of debt $
165,000,000

What is the total market value of debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Total market value $
126705000

What is the aftertax cost of the 7.2 percent coupon bond? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Aftertax cost of debt
5.22
%

What is the aftertax cost of the zero coupon bond? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Aftertax cost of debt
3.68
%

What is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Aftertax cost of debt
%
I answered all other questions, stuck on the "After tax cost of debt" need help.•

Similar Questions
  1. Homework Help: Math 222Posted by Tika on Monday, April 27, 2015 at 5:10pm. Posted by Tika on Monday, April 27, 2015 at 1:08pm.
    1. answers icon 0 answers
  2. Posted by Tika on Monday, April 27, 2015 at 5:11pm.Posted by Tika on Monday, April 27, 2015 at 1:03pm. How do I write an
    1. answers icon 1 answer
  3. Posted by Tika on Monday, April 27, 2015 at 5:08pm.Posted by Tika on Monday, April 27, 2015 at 12:44pm. How do I make a perfect
    1. answers icon 0 answers
  4. posted by rfvv Monday, November 28, 2016 at 3:29pm.Posted by rfvv on Friday, November 4, 2016 at 11:17pm. Oh Lordy, how my heart
    1. answers icon 1 answer
more similar questions