Question
PVE, Inc. has $15 million of debt outstanding with a coupon rate of 9%. Currently, the yield to maturity on these bonds if 7%. If
PVE, Inc. has $15 million of debt outstanding with a coupon rate of 9%. Currently, the yield to maturity on these bonds if 7%. If the firm's tax rate is 35%, what is the after tax cost of debt to PVE?
The answer shows as 4.55%, but I need assistance is how this was calculating.
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Financial Analysis With Microsoft Excel
Authors: Timothy R. Mayes
9th Edition
0357442059, 9780357442050
