Consider the following information on Astral Accounting Pty Ltd.
Extract of Astral Accounting Pty Ltd Balance Sheet as at June 2006 Extract of Astral Accounting Pty Ltd Income Statement as at June 2006 Calculate the cost of debt for Astral Accounting using book values and then determine the current cost of debt using the risk premium approach given the yield on 10- year bonds was 6.50% at June 2005 and 7.25% at June 2006.

Question

Consider the following information on Astral Accounting Pty Ltd.
Extract of Astral Accounting Pty Ltd Balance Sheet as at June 2006  Extract of Astral Accounting Pty Ltd Income Statement as at June 2006  Calculate the cost of debt for Astral Accounting using book values and then determine the current cost of debt using the risk premium approach given the yield on 10- year bonds was 6.50% at June 2005 and 7.25% at June 2006.

Quizplus · Accepted Answer

The Answer of Consider the following information on Astral Accounting Pty Ltd.
Extract of Astral Accounting Pty Ltd Balance Sheet as at June 2006  Extract of Astral Accounting Pty Ltd Income Statement as at June 2006  Calculate the cost of debt for Astral Accounting using book values and then determine the current cost of debt using the risk premium approach given the yield on 10- year bonds was 6.50% at June 2005 and 7.25% at June 2006.

Consider the Following Information on Astral Accounting Pty Ltd