Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 12 percent coupon rate and make semiannual coupon payments
In order to sell the issue, the bonds must be underpriced at a discount of 2.5 percent of face value. In addition, the firm would have to pay flotation costs of 2.5 percent of face value. The firm's tax rate is 33 percent. Given this information, the after-tax cost of debt for Tangshan Mining would be ________.
A) 6.38%
B) 12.76%
C) 4.98%
D) 8.48%
D
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Cash flows from issuing and repurchasing stock or issuing and repaying debt are classified as:
A) operating activities. B) investing activities. C) financing activities. D) purchasing activities.
Compensatory damages are awarded ________
A) to a party based on the amount stipulated in a clause in the contract B) to place the injured party in the position it would have been in had the terms of the contract been performed C) to deter the defendant and others from doing the same act again D) to help a party recover court costs if it is injured by a breach of contract but cannot show real damages
In governmental accounting, emphasis is placed on:
A. Expenditures of funds. B. The flow of funds through the income statement. C. Generating income from funds employed. D. Total assets owned by the governmental entity.
What is the appropriate objective function for this scenario?
An entrepreneurial resident of the Oklahoma City metropolitan area is interested in securing a new franchise for Mad Over Donuts. Ideally this franchise would be centrally located so delivery could be economically handled and all citizens could enjoy fresh, delicious donuts delivered to the doorstep. The main cities and anticipated demand (in thousands per day) are shown in the table. City x-coord y-coord Demand Jones 6 28 45 Luther 13 35 56 Harrah 12 22 30 Edmond 0 32 25 Norman 2 0 33 Moore 3 8 22