The Coca-Cola Company is planning to issue debt that wal mature in 2093. In many...
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The Coca-Cola Company is planning to issue debt that wal mature in 2093. In many respocts, the issue is similar to the currently outstanding debt of the corporation, Use Table 113 a. What is the yleid to maturity on similarfy outstanding debt for the firm in terms of maturity. Note: Input your answer as a percent rounded to 2 decimal places. b. Assume that because the new debt will be issued at par, the required yield to maturity will be 0.12 percent higher than the value determined in part a. What is the new yleid to maturity? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. c. If the firm is in a 25 percent tax bracket, what is the aftertax cost of debt for the yield determined in part b ? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Table 11.3 Excerpt from S\&P Capitol 1Q Net Acivontoge The Coca-Cola Company is planning to issue debt that wal mature in 2093. In many respocts, the issue is similar to the currently outstanding debt of the corporation, Use Table 113 a. What is the yleid to maturity on similarfy outstanding debt for the firm in terms of maturity. Note: Input your answer as a percent rounded to 2 decimal places. b. Assume that because the new debt will be issued at par, the required yield to maturity will be 0.12 percent higher than the value determined in part a. What is the new yleid to maturity? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. c. If the firm is in a 25 percent tax bracket, what is the aftertax cost of debt for the yield determined in part b ? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Table 11.3 Excerpt from S\&P Capitol 1Q Net Acivontoge


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