Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

A) A bond that has a $ 1,000 par value (face value) and a contract or coupon interest rate of 11.3%. Interest rates are $56.50 and are paid semi annually. The bonds have a current market value of$ 1,121 and will mature in 10 years. The firm's marginal tax rate is 34%.

a) The after tax cost of debt is ______%

B) A new common stock issue that paid a dividend of $1.76 million last year. The firm's divendends are expected to grow at 6.1 percent, per year, forever. The price of the stock is currently $27.58

b) The cost of common equity is ______%

c) A preffered stock that sells for $154, pays a divendend of 9.1 percent, and has a $100 par value.

c) The cost of preffered stock is ______%

A bond selling to yield at 11.7 percent where the firm's tax rate is34%

d) The after-tax cost of debt is ____%

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91385420

Have any Question?


Related Questions in Business Economics

Suppose the demand schedule in a market can be represented

Suppose the demand schedule in a market can be represented by the equation QD = 500 -10P, where QD is the quantity demanded and P is the price. . Also, suppose the supply schedule can be represented by the equation QS = ...

By chance does any know what percentage of the world gdp

By chance does any know What percentage of the world GDP has the Global 500 contributed most recently?

Determine whether the given value is a statistic or a

Determine whether the given value is a statistic or a parameter. Thirty percent of all dog owners poop scoop after their dog

Answer in true or false1 in the circular flow model firms

Answer in true or False : 1) In the circular flow model, firms sell the services of factors of production to households 2) If GDP included the value of leisure time, the value of US GDP would most likely increase. 3) GDP ...

Below is my attempt at answering a quiz question and i am

Below is my attempt at answering a quiz question and I am seeking feedback (my answers are in bold): The Final Exam scores for all students enrolled in STAT 200 have a mean score of 72. One randomly selected section of S ...

The current value of a company is 25 million if the value

"The current value of a company is $25 million. If the value of the company six year ago was $10 million, what is the company's mean annual growth rate over the past six years?" Please explain how the answer was reached ...

Sixty percent of adults have looked at their credit score

Sixty percent of adults have looked at their credit score in the past six months. If you select 31 customers, what is the probability that at least 25 of them have looked at their score in the past six months?

A coffee manufacturer is interested in the mean daily

A coffee manufacturer is interested in the mean daily consumption of regular-coffee drinkers and decaffeinated coffee drinkers. The random sample of 50 regular-coffee drinker show a mean of 3.84 cups per day. A sample of ...

1 explain the reason for measuring government production at

1. Explain the reason for measuring government production at cost? 2. What is the main shortcoming in valuing government production in this way?

Not sure where im going wrong on this one any help is

Not sure where I'm going wrong on this one. Any help is appreciated. The following information relates to RAM Corporation: Accounts receivable                     $160,000 Total credit sales                        $2,500 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As