Beckham Corporation has semiannual bonds outstanding with 13 years to maturity and the bonds are currently priced at $746.16. If the bonds have a coupon rate of 8.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%

8.125%  

Explanation:

Given that,  

Present value = $746.16

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8.5% ÷ 2 = $42.5

NPER = 13 years × 2 = 26 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 6.25% × 2 = 12.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 12.50% × ( 1 - 0.35)

= 8.125%      

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.