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  3. 21. a company has a total market value of $200 mil

21. A company has a total market value of $200 million, $50 million of which...

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Finance

21. A company has a total market value of $200 million, $50 million of which is short-term debt. The cost of that short-term debt was 5.5%. The company has a marginal tax rate of 30%. What is the after-tax cost of short-term debt for the company?
22. A person pays $900 for a bond that has 10 years left to maturity and a coupon rate of 8%. What is the yield to maturity on this bond if the par value is $1,000?
23. A 5% coupon rate bond matures in 6 years. The expected return is 8% and face value is $1,000. Assume annual compounding. What is the value of the bond?
24. A company sold an old machine with a book value of $40,000 for $75,000. If the tax rate is 40%, what is the net proceeds from the sale of the old machine?

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