Homework Answers
The after-tax cost of bond is calculated using the RATE function:-
=RATE(nper,pmt,pv,fv)*(1-tax)
=RATE(25*2,8%/2*1000,-748.68,1000)*(1-0.4)
=3.29%
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signment: Chapter 9: Cost of Capital signment Score: 28.57% Email Instructor Save Exit Submit Assignment for Gradin...
Save Exit Submit Assignment for Grading ructor Question 5 of 8 Problem 9-09 Check My Work...
Save Exit Submit Assignment for Grading ructor Question 5 of 8 Problem 9-09 Check My Work eBook Problem 9-9 Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells af a price of $748.68. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your...
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ment: Chapter 9: Cost of Capital ent Score: 28.57% Instructor Submit Assignment for Grading Exit ons Problem 9-13 Question 7 of 8 Check My Work eBook Problem 9-13 The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $25. The expected dividend and the growth in dividends are $2.25 per share and 4 % , respectively. If the flotation cost is 13% of the issue's gross proceeds, what is the cost of external...
Assignment Score: 27.27% tions Problem 11-09 (Bond Yield and After Tax Cost of Debt) Save Submit...
Assignment Score: 27.27% tions Problem 11-09 (Bond Yield and After Tax Cost of Debt) Save Submit Assignment for Grading · Question 6 of 11 Check My Work eBook Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $665.6. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC7 (Hint:...
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ebook Bond Yield and Alter Tax Cost of Debt A company's 7% coupon rate, semiannual payment,...
ebook Bond Yield and Alter Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $585.98. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places Check My Work (3 remaining) eBook H Problem Walk Through Cost of...
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Save Submit Assignment Question of Check My Work (No more tries available) Problem 10-1 After-tax cost...
Save Submit Assignment Question of Check My Work (No more tries available) Problem 10-1 After-tax cost of Debt The Holmes Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places Hide Feedback Incorrect ote Question 4 of 8...
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My question is Q 9, calculating WACC , thank you!
7. Calculating Cost 8. Calculation USE OF debt? U atins Cost of Debt UI debt? If the tax rate Jiminy's Cricket Farm issued a 30-year, 7 percent miannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The company's tax rate is 35 percent. a. What is the pretax cost of debt? b. What is the aftertas cost of debt? Which is more relevant,...
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Save Exit Submit Assignment for Grading ructor Question 5 of 8 Problem 9-09 Check My Work eBook Problem 9-9 Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells af a price of $748.68. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your...
ment: Chapter 9: Cost of Capital ent Score: 28.57% Instructor Submit Assignment for Grading Exit ons Problem 9-13 Question 7 of 8 Check My Work eBook Problem 9-13 The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $25. The expected dividend and the growth in dividends are $2.25 per share and 4 % , respectively. If the flotation cost is 13% of the issue's gross proceeds, what is the cost of external...
Assignment Score: 27.27% tions Problem 11-09 (Bond Yield and After Tax Cost of Debt) Save Submit Assignment for Grading · Question 6 of 11 Check My Work eBook Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $665.6. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC7 (Hint:...
ebook Bond Yield and Alter Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $585.98. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places Check My Work (3 remaining) eBook H Problem Walk Through Cost of...
Problem 9-8 WACC David Ortiz Motors has a target capital structure of 45% debt and 55% equity. The yield to maturity on the company's outstanding bonds is 8%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.02%. What is the company's cost of equity capital? Round your answer to two decimal places. O®% Hide Feedback
Save Submit Assignment Question of Check My Work (No more tries available) Problem 10-1 After-tax cost of Debt The Holmes Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places Hide Feedback Incorrect ote Question 4 of 8...
My question is Q 9, calculating WACC , thank you!
7. Calculating Cost 8. Calculation USE OF debt? U atins Cost of Debt UI debt? If the tax rate Jiminy's Cricket Farm issued a 30-year, 7 percent miannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The company's tax rate is 35 percent. a. What is the pretax cost of debt? b. What is the aftertas cost of debt? Which is more relevant,...
Save Submit Assignment for Grading Questio Cost of Capital: Weighted Average Cost of Capital Question 6 of 6 Check My Work The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average...
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