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Jiminys Cricket Farm issued a 30-year, 4 percent semiannual coupon bond 2 years ago. The bond currently sells for 107 percent of its face value.
Jiminys Cricket Farm issued a 30-year, 4 percent semiannual coupon bond 2 years ago. The bond currently sells for 107 percent of its face value. The companys tax rate is 21 percent.
A) What is the companys pretax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
B) What is the companys aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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