If the corporate tax rate is 34 percent what is the


Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.

Bond Coupon Rate Price Quote Maturity Face Value

1 8.50 % 106.0 5 years $ 19,000,000

2 6.50 94.4 8 years 39,000,000

3 8.20 104.8 15.5 years 44,000,000

4 8.70 94.6 25 years 59,000,000

If the corporate tax rate is 34 percent, what is the aftertax cost of the company’s debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Aftertax cost of debt             %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the corporate tax rate is 34 percent what is the
Reference No:- TGS02708197

Expected delivery within 24 Hours