Business, 05.12.2019 02:31 brian2913

An overview of a firm's cost of debt for which capital component must you make a tax adjustment when calculating a firm’s weighted average cost of capital (wacc)? equity debt preferred stock water and power company (wpc) can borrow funds at an interest rate of 9.70% for a period of five years. its marginal federal-plus-state tax rate is 25%. wpc’s after-tax cost of debt is 7.28% (rounded to two decimal places). at the present time, water and power company (wpc) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 25%. if wpc wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:40

Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?

Answers: 3

Answer

Business, 22.06.2019 15:00

Ineed this asap miguel's boss asks him to distribute information to the entire staff about a mandatory meeting. in 1–2 sentences, describe what miguel should do.

Answers: 1

Answer

Business, 22.06.2019 22:30

Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. he expects these costs to rise about $1500 each year while he is in college. if it will take him 5 years to earn his bs, what is the present cost of his degree at an interest rate of 6%? if he earns and extra $10000 annually for 40 years, what is the present worth of his degree.?

Answers: 3

Answer

Business, 23.06.2019 02:30

The accountant at bramble corp. has determined that income before income taxes amounted to $10800 using the fifo costing assumption. if the income tax rate is 30% and the amount of income taxes paid would be $900 greater if the lifo assumption were used, what would be the amount of income before taxes under the lifo assumption?

Answers: 2

Answer

You know the right answer?

An overview of a firm's cost of debt for which capital component must you make a tax adjustment when...

Questions