After-tax cost of debt
Not what you're looking for?
Calculate the after-tax cost of a $25 million debit issue that Pullman Manufacturing Corporation (40 percent marginal tax rate) is planning to place privately with a large insurance company. This long-term issue will yield 6.6 percent to the insurance company.
Purchase this Solution
Solution Summary
This explains the computation of after-tax cost of debt with the help of illustration
Solution Preview
The after-tax cost debt= Yield*(1-tax rate)
=6.6%*(1-.4)
=3.96%
=Answer
Note:
*** Remember, this service is not ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Operations Management
This quiz tests a student's knowledge about Operations Management
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.