The after tax cost of debt debt for the firm

Assignment Help Financial Management

Reference no: EM13808711

1. Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 7.19% while the borrowing firms corporate tax rate is 34%. The after tax cost of debt debt for the firm is ________% (Round to two decimal places)

2. Common stock for a firm that paid a $1.07 dividend last year. The dividends are expected to grow at a rate of 5.9% per year into the foreseeable future. The price of this stock is now $24.77. The cost of common equity for the firm is _________% (Round to two decimal places)

3. A bond that has a $1,000 par value and a coupon interest rate of 12.6% with interest paid semi annually. A new issue would sell for $1149 per bond and mature in 20 years. The firm's tax rate is 34%. The after tax cost of debt for the firm is ________% (Round to two decimal places)

4. A preferred stock paying a dividend of 6.6% on a $100 par value. If a new issue is offered, the shares would sell for 83.14 per share. The cost of common equity for the firm is _________% (Round to two decimal places)

Reference no: EM13808711

Questions Cloud

Leadership scores for both male and female managers : Calculate the mean, median, mode, variance, and standard deviation for the numeric data and construct a histogram, pie, or Stem-Leaf Display chart encompassing the mean leadership scores for both male and female managers.

Explain the type of nonrenewable energy resource : Explain the type of nonrenewable energy resource

Average ratios to construct a pro forma balance sheet : Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc. The company's total assets are $___________(round to the nearest dollar) The company's fixed assets are $___________(round to the nearest dollar) ..

Crm implementation of the project : You just finished up your status meeting with Ben and are deeply concerned about the CRM implementation of the project. You are not sure, given what you just heard, that the project will be able to finish in time.

The after tax cost of debt debt for the firm : Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 7.19% while the borrowing firms corporate tax rate is 34%. The after tax cost of debt debt for the firm is ________% Common stock for a firm..

Research database description measures to reduce hypothermia : Research Database Description measures to reduce hypothermia

Bonds make semi annual payments and have a par value : Sqeekers Co. issued 10-year bonds a year ago at a coupon rate of 7.6 percent. The bonds make semi annual payments and have a par value of $1,000. If the YTM on these bonds is 5.9 percent, what is the current bond price? (Do not round intermediate cal..

Manufacturing firm with annual earnings : The company is a manufacturing firm with annual earnings in excess of $350 million.

Suppose two years later from the original issuing date : XYZ Company is planning to issue some bonds. The bonds, with a $5,000 par value and the coupon rate of 12% will mature in 10 years. The interest will be paid semi annually. Suppose two years later from the original issuing date, the going rate in the..

User Account

All Pages