User Account

All Pages

What is the firms pretax cost of debt

Assignment Help Finance Basics
Reference no: EM132097215

DATEC Inc has a debt-equity ratio of 0.47. The firm's required return on assets is 11.8 percent and its current cost of equity is 14.23 percent. What is the firm's pretax cost of debt? Ignore taxes.

Reference no: EM132097215

Questions Cloud

What gain or loss did bogus recognize on the exchange : Assume depreciation has already been updated. What gain or loss did Bogus recognize on the exchange, assuming no commercial substance
What is the value of this firm to its shareholders : The firm owes its bondholders $63,000. The firm will only operate for one more year. What is the value of this firm to its shareholders?
What is benskin cost of capital : The average interest rate on Benskin's debt is 10% and the stockholders desire a 15% return. What is Benskin's cost of capital
Compute the amount of phantom profit : In its first month of operation, Kuhlman Company purchased 280 units of inventory for $12, Compute the amount of phantom profit
What is the firms pretax cost of debt : DATEC Inc has a debt-equity ratio of 0.47. The firm's required return on assets is 11.8 percent and its current cost of equity is 14.23 percent.
Company weighted average cost of capital : What is the company's Weighted Average Cost of Capital
Prepare journal entry to record the allocation of net income : Coburn (beginning capital, $55,000) and Webb (beginning capital $80,000) are partners. Prepare the journal entry to record the allocation of net income
Equation to solve problem : Flex, a popular athletic apparel store, has a common stock book value of $40,000. They issued these shares at $40 and they are now trading at $50.
Compute mary cost recovery deduction : On May 28, 2015, Mary purchased and placed in service a new $20,000 car. Compute Mary's cost recovery deduction and any cost recovery recapture in 2016

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the amount of operating cash flow

If the tax rate is 27%, what is the amount of operating cash flow (OCF) each year? Answer to the nearest dollar, for example 102.

  Which of the approaches-future value or present value

Which of the approaches-future value or present value- do financial managers rely on most often for decision making? Why?

  How much external financing will frisch fish need

Frisch Fish Corp expects net income next year to be $605,000. Inventory and accounts receivable will have to be increased by $299,000 to accommodate.

  What is the current enterprise value

Lakeland Dairy forecasts FCF of $49,242 in Year 1 and $31,007 in Year 2. After Year 2 FCF will grow at a constant rate of 3%. If Lakeland's WACC is 10%, what is the current enterprise value?

  What is meant by logistics engineering

Define logistics. What is meant by supply-chain management (SCM)? Describe how the two relate to each other (if at all). What are the elements of logistics? Briefly describe each. What is meant by logistics engineering? Define supportability?

  The yeptal corporations last dividend was 200 the dividend

the yeptal corporations last dividend was 2.00. the dividend growth rate is expected to be constant at 25 for 3 years

  What is the expected return of a new portfolio

Refer to the information above. What is the expected return of a new portfolio that is 60% invested in Portfolio R and 40% in Portfolio S?

  Assume the following newest probabilities

Compute the P (1 purchase), and enter your answer with 3 decimal places

  Determine whether a particular business is small

What information would you need to determine whether a particular business is small according to SBA guidelines?

  Analyze the validity of the authors finance

Communicate in a manner that is professional and consistent with expectations for members of the business professions.

  How much would the firm save in interest

What if interest rates on the 10 percent loan go up to 15 % in the second year and 18% in the third year? What would be the total interest cost compared to the 12%, three year loan?

  What was the company dividend payout ratio

Marine Biotechnologies, Inc. earned $150 million this year, of which $90 million was retained for future investment projects and the remainder

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