Avicorp has a $ 11.9 million debt issue 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 effective annual return. b. if avicorp faces a 40 % tax rate, what is its after-tax cost of debt? note: assume that the firm will always be able to utilize its full interest tax shield.

Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.