What is heuser after-tax cost of debt

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1) The Heuser Company's currently outstanding bonds have a 8% coupon and a 14% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.

2) Warr Corporation just paid a dividend of $2.5 a share (that is, D0 = $2.5). The dividend is expected to grow 11% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.

D1 = $   

D2 = $   

D3 = $   

D4 = $   

D5 = $

Reference no: EM132021391

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