What would the wc before tax component cost of debt

Assignment Help Finance Basics
Reference no: EM13263446

WC inc has a $10,000,000 (face value) a 10 year bond issue selling for 99% of par that pays that pays an annual coupon of 9%. What would the WC's before tax component cost of debt?

Reference no: EM13263446

Questions Cloud

What is the effective cost of borrowing in this case : What is the effective cost of borrowing in this case? Assume that default is extremely unlikely. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.
What is the horizontal component of the force : A 28.4kg beam is attached to a wall with a hinge and its far end is supported by a cable. what is the horizontal component of the force exerted by the hinge on the beam
Calculate the resistance of the load : The high-voltage side of a transformer has 750 turns, and the low voltage side has 50 turns. When the high side is connected to rated voltage of 120 V, 60 Hz, a rated load of 40 A is connected to the low side.
What be the firm component cost of preferred stock : Firm has preferred stock selling for 95% of par that pays an annual 8% coupon . what be the firm's component cost of preferred stock?
What would the wc before tax component cost of debt : WC inc has a $10,000,000 (face value) a 10 year bond issue selling for 99% of par that pays that pays an annual coupon of 9%. What would the WC's before tax component cost of debt?
What is the change in the kinetic energy of the object : A 620g object traveling at 2.1m/s collides head-on with a 320g object traveling in the opposite direction at 3.8m/s. what is the change in the kinetic energy of the 620g object
Calculate the number of turns on transformers high side : a) The number of turns on its high side. b)The turns ratio when it is used as a step-down transformer. c) The turns ratio when it is used as a step-up transformer.
Evaluating and reflecting upon your own presentation : Did you find that this kind of presentation is a good way to show what you know about a topic (perhaps compared to an essay or a live debate?)
What is cjs company cost of equity : CJ"s stock has a beta pf 0.9 the current risk free rate is 5.6 and the expected return or the market value is 13% . What is CJ's company cost of equity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Future of managed care

Explain what you see as the future of managed care. Base your assessment on comparison to traditional healthcare delivery systems using cost, quality, and access to care.

  Investment decision rule problems

Investment Decision Rule Problems : -  A $25 investment produces $27.50 at the end of the year with no risk. If the OCC = 10% annually is this a good investment?

  Does such behavior create problems in using value

publicly owned firms sometimes make decisions to maximize their own welfare as opposed to that of stockholders. Does such behavior create problems in using value maximization as a basis for examining managerial decision making?

  What is the cash price of the car

Under the terms of her finance agreement she is required to make payments of $210/month for 60 months. What is the cash price of the car? (Round your answer to the nearest cent.)

  What has the inflation rate been on gas

You currently have $400,000 and expect to spend $30,000 per year for twenty years. If the interest rate is 8%, how much will you have or how much will you owe in twenty years?

  Present value help

Basic Buildings Inc. has decided to go public with a $5,000,000 new equity issue. Its investment bankers agreed to take a smaller fee now (6 percent of par value versus 10 percent) in exchange for a 1-year option to purchase an additional 200,000 ..

  What is the company taget debt equity ratio

Fama's lamas has a weighted average cost of capital of 9.6%. The comapny's cost of equity is 12%, and its pretax cost of debt is 7.9% The tax rate is 35%. What is the company's taget debt equity ratio?

  Computation of approximate cost of the cash float per day

Computation of approximate cost of the cash float per day and the interest rate that could be earned is .02% .0002 per day

  Explain the roles of financial institutions

Describe and discuss how these changes might impact stakeholder relationships your organization has with financial institutions and explain the roles of financial institutions in the global economy.

  Computation of promised yield to maturity for cardiotronics

Computation of promised yield to maturity for Cardiotronic's zero coupon bonds and the probability of default that is implicit in the price of Cardiotronics outstanding zero-coupon bonds

  Determine the maximum price per share

A manufacturing Company is planning buying another. During the year completed ABC Co. earned $ 4.25 per share and paid a cash dividend of $ 2.55 per share ABC co earnings and dividends are expected to grow at 25 percent per year for the next three ye..

  What annual interest rate must they earn to reach their goal

Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your ans..

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