The before tax cost of debt for a firm

Assignment Help Accounting Basics
Reference no: EM131031262

1. The before-tax cost of debt for a firm, which has a marginal tax rate of 40 percent, is 12 percent. The after-tax cost of debt is ________.

a. 4.8 percent.
b. 7.2 percent.
c. 12 percent.
d. 6.0 percent. 

Reference no: EM131031262

Questions Cloud

What determines the torque or force output : What determines the torque or force output of a Hydraulic Motor.
The vertical distance above the centerline of the pump : The vertical distance above the centerline of the pump inlet to the point of free discharge or surface level
How agency allegations of misconduct are investigated : No matter how hard an agency tries, there will always be allegations of misconduct and actual misconduct by law enforcement officers. While the reasons for this are important, you are going to explore how these allegations of misconduct are invest..
The vertical distance above the centerline of the pump : The vertical distance above the centerline of the pump inlet to the free level of the fluid surface. If the free level of the fluid is below the pump inlet, hz, will be negative and is known as static suction lift
The before tax cost of debt for a firm : The before-tax cost of debt for a firm, which has a marginal tax rate of 40 percent, is 12 percent. The after-tax cost of debt is ________.a. 4.8 percent.b. 7.2 percent.c. 12 percent.d. 6.0 percent.
Standard atmospheric pressure : Standard atmospheric pressure (numerical value).Be very specific and to the point if you want me to reward you
What is the typical service life for hydraulic motors : What is the typical service life for hydraulic motors?
Describe and explain how arbitration works : Describe and explain how arbitration works and how it may benefit or hinder either side. Also explain mediation and the various types of alternative dispute resolution used in the airline industry. Give examples and cite your sources.
Explain why the plot is not linear : The refrigerant is now heated until its temperature rises to 70°C. Calculate the work done during this process.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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