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Author Question: Tom's Ventures has a zero coupon bond issue outstanding that matures in thirteen years. The bonds ... (Read 172 times)

swpotter12

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on: Apr 25, 2021

Question 1

The return that lenders require on their loaned funds to the firm is called the
◦ coupon rate.
◦ current yield.
◦ cost of debt.
◦ capital gains yield.
◦ cost of capital.

Question 2

Tom's Ventures has a zero coupon bond issue outstanding that matures in thirteen years. The bonds are selling at 48 percent of par value. The company's tax rate is 34 percent. What is the company's after-tax cost of debt?
◦ 3.83 percent
◦ 4.11 percent
◦ 4.73 percent
◦ 4.80 percent
◦ 5.81 percent
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by swpotter12 on Apr 25, 2021

tsternbergh47

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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swpotter12

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

xiazhe

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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