A firm has $7 Billion in debt outstanding with a yield to maturity of 9%. The firm pays taxes at the rate of 34%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.]
After tax cost of debt = Pre-tax cost of debt(1 - t)
Pre-tax cost of debt = Yield to Maturity
So,
After-tax cost of debt = 0.09(1 - 0.34)
After-tax cost of debt = 5.94%
A firm has $7 Billion in debt outstanding with a yield to maturity of 9%.
A firm has $4 Billion in debt outstanding with a yield to maturity of 4%. The firm pays taxes at the rate of 33%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.)
A firm has $3 Billion in debt outstanding with a yield to maturity of 5%. The form pays taxes at the rate of 36%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.)
Question 11 (0.2 points) A firm has $6 Billion in debt outstanding with a yield to maturity of 8%. The firm pays taxes at the rate of 27%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.] Your Answer: Answer units View hint for Question 11 Question 12 (0.2 points) A firm has a market capitalization (market value of equity) of $11 Billion and net debt of $3 Billion....
please give the answer & the units Question 11 (0.2 points) A firm has $4 Billion in debt outstanding with a yield to maturity of 5%. The firm pays taxes at the rate of 32%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.] Your Answer: Answer units
a firm has $ 8 Billion in debt outstanding with a yield to maturity of 4%. The firm pays taxed at the rate of 36%. What is the firms effective (after-tax) cost of debt?
Question 11A firm has a market capitalization (market value of equity) of $16 Billion and net debt of $12 Billion. Calculate the weight of debt in the firm's weighted average cos of capital (WACC) calculation. (Note: Enter your answer as a percentage rounded to two decimal places.] Question 12A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%, and its weight of equity is 60%. Calculate...
period is less than one year. 04) The payback rule is biased in favor of long-term projects The payback period considers the timing and amount of all of a project's cash 5) flows. Question 6 (1 point) A firm has $6 Billion in debt outstanding with a yield to maturity of 6 %. The firm pays taxes at the rate of 38 %. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to...
Laurel, Inc., has debt outstanding with a coupon rate of 6.2% and a yield to maturity of 6.9%. Its tax rate is 40%. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. ROUND TO 4 DECIMAL PLACES
A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a percentage rounded to two decimal places.]
A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a percentage rounded to two decimal places.]