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*please dont round till the end* Filer Manufacturing has 7,738,209 shares of common stock outstanding. The current share price is $54.87, and the book value
*please dont round till the end*
Filer Manufacturing has 7,738,209 shares of common stock outstanding. The current share price is $54.87, and the book value per share is $5.12. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $52,827,728, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $41,615,773, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.02 and the dividend growth rate is 0.05 . Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.24 . What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345 ) Filer Manufacturing has 7,738,209 shares of common stock outstanding. The current share price is $54.87, and the book value per share is $5.12. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $52,827,728, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $41,615,773, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.02 and the dividend growth rate is 0.05 . Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.24 . What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345 ) Step by Step Solution
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