Trw creditors need before tax cost of debt of 78 percent

Reference no: EM13476175

Calculate the after cost of debt capital for the following:

TRW creditors require a before tax cost of debt of 7.8 percent rate of return. TRW corporate income rate is 34 percent. What is there after tax cost of debt?

Calculate the average cost of capital for the following:

Source of capital capitalstructure before tax cost

Bonds 35% 7%

Preferred stock 5% 13%

Common equity 60% 14%

The tax rate is 34%

Reference no: EM13476175

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Trw creditors need before tax cost of debt of 78 percent : calculate the after cost of debt capital for the followingtrw creditors require a before tax cost of debt of 7.8

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