Estimate the after tax cost of debt

Assignment Help Basic Computer Science
Reference no: EM131757567

Suppose you are trying to estimate the after tax cost of debt for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC). The corporate tax rate for this firm is 32%. The firm's bonds pay interest semiannually with a 5% coupon rate and have a maturity of 18 years. If the annual yield to maturity of the bonds is 8.34%, what is the after tax cost of debt for this firm? (Answer to the nearest hundredth of a percent, e.g. 12.34%, but do not use a percent sign).

Reference no: EM131757567

Questions Cloud

Which of the given best described yosem action : Yosem has already flipped a new Massachusetts quarter three times, and each time it has come up heads. He then says to his friend Pablo.
What is the total market value of firm : If these bonds have a coupon interest rate of 9%, 22 years to maturity, a face value of $1,000, and a current price of 1,010.35
Discuss from your personal point of view of working : Discuss from your personal point of view the advantages/disadvantages and like/dislike of working for each gender.
What is the current value of the unlevered firm : a. What is the current value of the unlevered firm? b. How much debt should be issued?
Estimate the after tax cost of debt : Suppose you are trying to estimate the after tax cost of debt for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC).
Describe how you will overcome threats from each five forces : Describe how you will overcome threats from each of the five forces while achieving your professional goal(s) after graduation from the MS-IST Program.
Problem on violating the sunk cost principle : Nathalie is an expert in taxes and she prefers more money to less. She bought a ticket to see Ariadne auj'Naxos at the opera. It cost her $50.
Conversion costs are allocated based on the number of units : Conversion costs are allocated based on the number of units processed in each department
An explanation of why the policy exists : This is where you define who or what the policy applies to, from all employees to only cashiers that handle cash in the front office.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Data member to which section of the class

To expose a data member to a program you must expose the data member to which section of the class?

  Minimum of three performance appraisal methods

Performance management includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the process..

  What run-time data structures are needed in java

What run-time data structures are needed in Java to implement the mark phase of a mark-sweep garbage collector in which all accessible ("live") heap objects are marked?

  Understanding of effective leadership

Based on your understanding of effective leadership, how do you think your representation captures those qualities or characteristics?

  How minimax and alpha-beta algorithms change for two-player

Describe how the minimax and alpha-beta algorithms change for two-player, nonzero-sum games in which each player has his or her own utility function.

  How much is the 2016 lifo cost of goods sold

The LIFO Reserve for year-end 2015 was $0.6 billion, and by year-end 2016 it had increased to $0.8 billion.

  Draw the block diagrams using the parallel methods

Mason's formula to show that you will get the same transfer function from the block diagrams.

  Which measure of central tendency does statement represent

Which measure of central tendency does this statement represent?

  Identify areas where data can be hidden on a computer?

Identify areas where data can be hidden on a computer?

  What do you recommend to management

You estimate that at least six weeks are needed to find and fix the problems. In addition, even more time is required to find and fix 15 additional, less severe bugs just uncovered by the QA team. What do you recommend to management?

  Describe the purpose of the working directory

In your own words, describe the purpose of the working directory and how it can speed or slow file access. In your opinion, should there be more than one working directory? Explain.

  How long will it take before all pcm changes to liquid state

Furthermore, it is known that the power dissipated by the electronics is 50 W. If the pod enters the furnace at a uniform temperature of 87°C when all the PCM is in the solid state, how long will it take before all the PCM changes to the liquid st..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd