Tangshan Mining Is Considering Issuing Long-Term Debt

question 94

Multiple Choice

Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 12 percent coupon rate and make semiannual coupon payments. In order to sell the issue, the bonds must be underpriced at a discount of 2.5 percent of face value. In addition, the firm would have to pay flotation costs of 2.5 percent of face value. The firm's tax rate is 33 percent. Given this information, the after tax cost of debt for Tangshan Mining would be

• A) 6.38%.
• B) 12.76%.
• C) 4.98%.
• D) 8.55%.

Understand how conditioned stimuli are developed and how they function within the learning process.

Understand the criteria for defining abnormal behavior, including the impact of behaviors on functioning and well-being.

Differentiate between chronic and acute disorders.

Recognize the concept of comorbidity among psychiatric diagnoses.

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Definitions:

Bradycardia

A slower than normal heart rate, typically defined as fewer than 60 beats per minute in adults, which can affect blood flow and oxygen to the body.

Sinoatrial Node

The heart's natural pacemaker, responsible for initiating and regulating the heartbeat by generating electrical impulses.

Pacemaker

An electronic device implanted in the body to regulate the heartbeat.

Tracheostomy

A medical procedure that involves creating an opening in the neck to place a tube into a person’s windpipe to allow air to enter the lungs.