Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9%, paid annually. The issue price will be $1,000. The tax rate is 25%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt

After cost of debt for a floatation cost of 2% is 6.62%

Explanation:

After tax cost of debt = Market interest × (1- tax rate)

We will get the cost of debt using the time value of money principle.

PV = -$1,000

Pmt = $1,000 × 9%

=$90

P/yr = 1

N = 20

FV =1,000

Tax rate = 25%

YTM

The market interest rate is 9% using financial calculator hence;

After-tax cost of debt = Market interest × (1-tax rate)

= 0.09 × (1 - 0.25)

= 0.0675 or 6.75%

If floatation cost is 2%, then

Net receipts after floatation cost = Cost × (1 - floatation rate)

= 0.0675 × (1- 0.02)

= 0.06615 or 6.62%

it is d i just took the test

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.  

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.