1. Calculate the pretax cost and the aftertax cost of debt
2. with the formula .

XD Calculating Cost of Debt - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 - A % Paste BIU- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Clipboard Font Styles J7 fa AB D E F G H I 2 Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company's pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt? 3 4 5 6 7 Settlement Maturity Price (% of par) Coupon rate Payments per year Tax rate 01/01/00 01/01/18 107 6% 2 35% 8 9 10 11 12 13 Complete the following analysis. Do not hard code values in your calculations. 14 15 16 Pretax cost 17 18 Aftertax cost of debt 19