What is after-tax cost of debt

Assignment Help Financial Management

Reference no: EM131962727

1. The before-tax cost of debt is 18.9 percent. What is the after-tax cost of debt if the tax rate is 49 percent??

2. You have $1,000 today and want to double your money in 8 years. What interest rate must you earn?

9.25%

9.00%

9.05%

9.50%

9.12%

3. A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

10.50 percent

7.5 percent

7.75 percent

11.11 percent

5.36 percent

Reference no: EM131962727

Questions Cloud

Would the covenant apply to the new addition to the mall : Would the covenant apply to the new addition to the mall? What is a covenant? What is a fair conclusion?According to law.

What is the remaining maturity of these bonds : What is the remaining maturity of these bonds?

What will be the par value of the shares after stock split : A corporation has 17,000 shares $50 par value common stock. The board of directors declares a 4-for-l stock split when the market value of the stock is $185.

Computing what is the company wacc : The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%.

What is after-tax cost of debt : The before-tax cost of debt is 18.9 percent. What is the after-tax cost of debt if the tax rate is 49 percent??

Solving problem using capm approach : Corporation Y has a face debt value of $40 Million USDs trading at 92% with a pre-tax weighted cost of 8%. Corporation Y common equity for the year was valued.

Outstanding amount on adjustable rate loan : Assume you have a $150,000 outstanding amount on an adjustable rate loan from Provident Bank, which amortizes over 10 years.

What was the rate of return to an investor in the fund : Corporate Fund started the year with a net asset value of $16.50. By year-end, its NAV equaled $14.10. The fund paid year-end distributions of income.

What is the weight of preferred stock : what is the weight of preferred stock?

User Account

All Pages