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please complete all parts to the question 2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the
please complete all parts to the question
2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Three Waters Company (TWC) can borrow funds at an interest rate of 11.10 % for a period of seven years. Its marginal federal-plus-state tax rate is 25%. TWC's after-tax cost of debt is (rounded to two decimal places). At the present time, Three Waters Company (TWC) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13 % , and distribute annual coupon payments. The company incurs a federal- plus-state tax rate of 25%. If TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 9.67% 9.27% 8.06 % 6.45% 2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1-T) Three Waters Company (TWC) can borrow funds at an interest rate of 11.10 % od of seven years. Its marginal federal-plus-state ta: (rounded to two decimal (1 + T) 25%. TWC's after-tax cost of debt is At the present time, Three Waters Company (TWC) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These be a current market price of $1,181.96 per bond, carry a coupon rate of 13 %, and distribute annual coupon payments. The company incurs a fe plus-state tax rate of 25%. If TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to tv- decimal places)? (Note: Round your YTM rate to two decimal place.) 9.67% 9.27% 8.06% 6.45% 2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Three Waters Company (TWC) can borrow funds at an interest rate of 11.10 % for a period of seven years. Its marginal federal-plus-state tax rate is 25%. TWC's after-tax cost of debt is (rounded to two decimal places) 9.57% At the present time, Three Waters Co c) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 11.10 % arry a coupon rate of 13 %, and distribute annual coupon payments. The company incurs a federal- plus-state tax rate of 25 %. If TWC wa e new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two 7.90% decimal places)? (Note: Round your two decimal place.) 8.32% 9.67% 9.27% 8.06% 6.45 % Step by Step Solution
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