What excel function is used to calculate cost of debt? Pretax and Aftertax? 6. Calculating Cost of
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What excel function is used to calculate cost of debt? Pretax and Aftertax?
6. Calculating Cost of Debt. ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 6.1 percent annually. What is ICUs pretax cost of debt? If the tax rate is 38 percent, what is the after tax cost of debt? PMT = ($1000 * 0.0305) PV = ($1000 * 1.08) FV is the par value of $1000.00
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