Tax component cost of debt

Assignment Help Financial Management

Reference no: EM13726318

1. HydroTech Corp stock was $50 per share a year ago when it was purchased. Since then, it paid a $4 per share dividend. The stock price is currently $45. If you owned 500 shares of HydroTech, what was your percent return?

2. TAB Inc. has a $1,000 (face value), 10 year bond issue selling for $1,184 that pays an annual coupon of 8.5 percent. What would be TAB's before-tax component cost of debt?

Reference no: EM13726318

Questions Cloud

What is your portfolio return : Portfolio Return Year-to-date, Company X had earned a -3 percent return. During the same time period, Company Y earned 12 percent and Company Z earned 7 percent. If you have a portfolio made up of 50 percent Company X, 30 percent Company Y, and 20 pe..

What is the required return for a stock : What is the required return for a stock that has a 5.7% constant-growth rate, a price of $21.25, an expected dividend of $1.70, and a P/E ratio of 10?

How writers move from actively listening at the sidelines : how writers move from actively listening at the sidelines of an academic conversation to engaging in that dialogue as participants.

What functions do retailers perform : what functions do retailers perform, discuss some of the major types of wholesalers. Provide an example of one of these wholesalers' types from the marketplace

Tax component cost of debt : HydroTech Corp stock was $50 per share a year ago when it was purchased. Since then, it paid a $4 per share dividend. The stock price is currently $45. If you owned 500 shares of HydroTech, what was your percent return? TAB Inc. has a $1,000 (face va..

Expect a constant-growth rate : A company with a return on equity of 15.7% and a plowback ratio of 70% would expect a constant-growth rate of:

Deposited in an account : How much must be deposited today in an account earning 8% annually to accumulate a 25% down payment to use in purchasing a car one year from now, assuming that the car's current price is $40,000, and inflation will be 5%?

Federal reserve begins to raise interest rates : The U.S. Federal Reserve has kept interest rates at a very low level for the last 5 years. How do you think these low interest rates affect the price of U.S. stocks? What do you think will happen to the value of U.S. stocks when the U.S. Federal Rese..

Gift tax liability problem : Barry and his wife Mary have accumulated over $4.10 million during their 45 years of marriage. They have five children and five grandchildren. How much money can they gift to their children and grandchildren in 2012 without any gift tax liability?

User Account

All Pages