Avicorp has a 142 million debt outstanding with a 61 coupon, Finance Basics

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Avicorp has a 142 million debt outstanding with a 61 coupon

Avicorp has a $14.2 million debt outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 94% of par value.

A. What is Avicorp's pre-tax cost of debt? Note: Compute the annual return.

B. If Avicorp's faces a 40% tax rate, what is its after-tax cost of debt?

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Finance Basics: Avicorp has a 142 million debt outstanding with a 61 coupon

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Finance Basics: Avicorp has a 142 million debt outstanding with a 61 coupon

Reference No:- TGS0606682

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Finance Basics: Avicorp has a 142 million debt outstanding with a 61 coupon

Reference No:- TGS0606682

Recent Questions Asked Finance Basics

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