What is pretax cost of debt-matroyshka inc

Assignment Help Finance Basics
Reference no: EM132724512

Matroyshka, Inc., has a target debt-equity ratio of 1.70. Its WACC is 8.9 percent, and the tax rate is 35 percent.

a. If the company's cost of equity is 13 percent, what is its pretax cost of debt?

Reference no: EM132724512

Questions Cloud

Explain the purpose of confined space entry permits : Explain the purpose of confined space entry permits. Explain the purpose of lockout/tagout permits.
Find and calculate each of the amounts as of december : Find and Calculate each of the amounts as of both December 31, 2018, and December 31, 2019. Stanley-Morgan Industries adopted a defined benefit pension plan
Find average interval of six minutes : At a service counter of fast-food joint, the customers arrive at the average interval of six minutes whereas the counter clerk takes on an average 5minutes
What is the probability that CIMSAs price will rise : The probability that CIMSA's stock price will rise in a given day is estimated to be 0.60. What is the probability that CIMSA's price will rise
What is pretax cost of debt-matroyshka inc : Matroyshka, Inc., has a target debt-equity ratio of 1.70. Its WACC is 8.9 percent, and the tax rate is 35 percent.
What do you know about natural medicines : What do you know about "natural" medicines, herbal cures and folklore or cultural practices to treat ailments? What practices do your family use?
What is the internal rate of return on projects : The project is expected to produce cash flows starting in year 2 of $269,000 a year for the following six years. What is the internal rate of return on projects
Company cost of equity capital-hudson corporation : The Hudson Corporation's common stock has a beta of 1.6. If the risk-free rate is 4.7 percent and the expected return on the market is 13 percent
Compute the ROI for the year ended December : The following information was available for the year ended December 31, 2019: Sales $300,000. Compute the ROI for the year ended December

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!

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