User Account

All Pages

What component cost of debt

Assignment Help Finance Basics
Reference no: EM132504612

To help finance a major expansion, Miami Development, Inc. sold a noncallable bond several years ago that now has 10 years to maturity. This bond has a 9.50% annual coupon, paid semiannually, it sells at a price of $1,175, and it has a par value of $1,000. MDI's marginal tax rate is 38.00% and new bonds have 3% flotation costs. What component cost of debt should be used in the WACC calculation? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.13456 or 13.456% then enter as 13.46 in the answer box.

Reference no: EM132504612

Questions Cloud

Explain the earning per share ratio : Explain the Earning per Share ratio. Explain how to calculate the ratio, what it measures, and what it tells an analyst about the company and why is important
What are the total payments of the investment : December 31st he is going to purchase new building at $225,000. He agrees' to put 20% down What are the total payments of this investment?
What amount of loss will palmon industries report : What amount of loss will Palmon Industries report on its income statement for the year ending December 31, 2015 related to this investment?
Prepare the journal entries to record income taxes : MarigoldLtd., which follows IFRS, reported accounting income of $324,000. Prepare the journal entries to record income taxes for 2020
What component cost of debt : To help finance a major expansion, Miami Development, Inc. sold a noncallable bond several years ago that now has 10 years to maturity. This bond
Compute the April inventory and the April cost of goods sold : Oriole Company uses a periodic inventory system. Compute the April 30 inventory and the April cost of goods sold using the LIFO method
How much does she need to save annually to achieve her goal : Rebecca caluclated that she needs a total of $1,400,000 at retirement (beyond pensions and social security). Rebecca is 34 years old, investing aggressively
Calculate company expected return : Question - Use the following information to calculate your company's expected return. Round to two decimal places
Company cash conversion cycle : Increased Efficiency, Inc. is looking for ways to shorten its cash conversion cycle. It has annual sales of $36,500,000, or $100,000 a day on a 365-day basis.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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