subject
Business, 29.03.2021 20:10 njx

Jack's Construction Co. has 80 bonds outstanding that are selling at their par value of $1,000 each. Bonds with similar characteristics are yielding a pretax 8.6 percent return. The firm also has 4,000 shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U. S. T-bill is yielding 4 percent, the market risk premium is 8 percent, and the firm's tax rate is 21 percent. Assuming its earnings are sufficient to classify all interest as tax deductible, What is the pre-tax cost of debt

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:50
One investigating company tracked all credit card purchase during 2012 and measured two variables: (1) the type of credit card used (visa, mastercard, american express, or discover), and (2) the amount (in dollars) of each purchase. identify the level of each variable measured.
Answers: 1
question
Business, 22.06.2019 06:30
If a team of three workers, each making the u.s. federal minimum wage, produced these 12 rugs, what would the total labor cost be? don't forget that these workers would be working overtime.
Answers: 3
question
Business, 22.06.2019 08:40
Which of the following statements is true regarding the reporting of outside interests and the management of conflicts? investigators are responsible for developing their own management plans for significant financial interests. the institution must report identified financial conflicts of interest to the u.s. office of research integrity. investigators must disclose their significant financial interests related to their institutional responsibilities and not just those related to a particular project. investigators must disclose all of their financial interests regardless of whether they are related to a research project.
Answers: 3
question
Business, 22.06.2019 10:40
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
You know the right answer?
Jack's Construction Co. has 80 bonds outstanding that are selling at their par value of $1,000 each....
Questions
question
History, 20.09.2019 13:50
question
History, 20.09.2019 13:50
question
Mathematics, 20.09.2019 13:50
Questions on the website: 13722363