PVE, Inc. has $15 million of debt outstanding with a coupon rate of 9%. Currently, the yield to maturity on these bonds is 7%. If the firm's tax rate is 35%, what is the after-tax cost of debt to J & B?
A) 10.76%
B) 5.85%
C) 4.55%
D) 5.4%
Answer: C
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The dollar amount that provides for covering fixed costs and then provides for operating income is called ________.
A) variable cost B) total cost C) contribution margin D) margin of safety
Which of the following is not a true statement regarding assets as they appear on the balance sheet?
a. Historical cost gives a good indication of the productive value of assets. b. Assets held for sale and measured at net realizable value represent a high degree of certainty as to measurement reliability. c. Certain types of deferred charges do not have any direct effect on future cash flows. d. In terms of additivity, it is questionable if a balance sheet should be added.
The comment "I have never heard you speak so well" may be perceived by listeners as containing a negative metacommunication
Indicate whether the statement is true or false
Demand-backward pricing involves a producer estimating an acceptable final consumer price and working backward to determine what the producer can charge in the channel.
Answer the following statement true (T) or false (F)