Waller Inc Is Trying To Determine Its Cost Of Debt The Firm Has A Debt Issue Out 3

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 102 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Company’s pretax cost of debt is percent. If the tax rate is 36 percent, the aftertax cost of debt is percent.

Posted in Uncategorized