Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.56 percent, a par value of $1,000 per bond, matures in 5 years, has a total face value of $3.9 million, and is quoted at 106 percent of face value. The second issue has a coupon rate of 6.18 percent, a par value of $2,000 per bond, matures in 24 years, has a total face value of $8.2 million, and is quoted at 94 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 40 percent. What is the firm's weighted average aftertax cost of debt?

The answer is 3.21%

Explanation:

Solution

From the question given, we find the firm's average cost of debt weighted.

                   Amount        weight         cost            weight*cost

Bond 1    4,134,000.0         0.3491        1.370%      0.0048

Bond2    7,708,000.000.6509        4.011%       0.0261

Therefore, he firm's weighted average after tax cost of debt is 3.21%

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.