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Cost of debt

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yds3484 | 16:15 Sat 28th Feb 2009 | Business & Finance
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If a company has $5 million of debt outstanding with a coupon rate of 12 percent. currently the yeild to maturity on these bonds is 14 percent. If the firms tax rate is 40 percent, what is the cost of debt
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It was covered in the lectures you missed and in the text books you haven't read.
Just google the formula for 'cost of debt' and have a go yourself.
18:18 Sat 28th Feb 2009

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