Select a company that is in the S&P 100 and compute its after-tax cost of debt. You may want to focus on firms that have publicly traded bonds to utilize the methods we have covered in the
lecture notes. Then discuss where you see the after-tax cost of debt go in the next 18 months.
A family plan
A family plans to purchase their first home in 5 years. To afford the monthly payments, the couple estimates they will need a down payment of $150,000 at that time. Assuming they can earn 7% of their investment, how much money will they need to deposit today?