cost of debt

Candy's Treehouse incurs flotation costs of $30 a bond whenever it chooses to issue new bonds. You already have some bonds outstanding that are selling for 105 (reminder: the trick is this means 105% of par so 105% of 1,000-???). Your outstanding bonds were issued 5 years ago with an original maturity of 20 years. These bonds have a stated coupon rate of 8% and pay out a semiannual coupon. Find the after-tax cost of debt if this firm has a tax rate of 40%. X Exam 2 Excel (1).xlsx B TYPE #OKAY! 3 FORM REF 4 Type # or formala ok! 5 5 D 1 Tax Rate Coupon Rate Coupon PMT Par Value Maturity Flotation S Price $ Before-Tax Cost After-Tax Cost RochesRGM11 D E instan have some bonds ng Candy's Tmb bond You is this ismed respon fem bar Question 4 ofth and Come of 40% 6 pts Open with 30 bd wit that arenge 125 on ndng bind 101% of 10 many of 20 63 FCF Vor- (1+WACC) WACC=(1-7)+(1-7)++ Tes D Pr(1-P) 86 D Pa T = For +(RPM)D 5-(2) MAKE SURE TO RENAME YOUR FILE NAME TO YOUR LAST NAME D D