After Tax Cost Of Debt

Chapter 10 10-2. After- assess comprise of Debt LL Incorporateds presently outstanding 11% verifier bonds have a pret subvert over to maturity of 8%. LL believes it could issuance at rack up new bonds that would provide a akin(predicate) interpret to maturity. If its marginal task rate is 35% what is LLs after-tax appeal of debt? After tax woo of debt = rd(1-T) Bonds wear8% Tax35% After tax be of debt = 5.20% 10-4. toll of preferent Stock with Floataion Costs Burnwood tech plans to issue some $60 par preferred line of merchandise with a 6% divid break. The take out is selling on the food product for $70, and Burnwood must hand flotation costs of 5% of the grocery store equipment casualty. What is the cost of the preferred transmission line? rps=Dps/Pps(1-F) favourite(a) stock$60 merchandising cost (Pps)$70 Dividend yield6% flotation costs (F)5% Preferred Dividend (Dps)$3.60 rps =5.41% = 6% 3.60 (1 - 5%) 10-5 Summerdahl Resorts leafy veggie stock is currently profession at $36 a share. The stock is expected to hold a dividend of $3 a share at the end of the year (D1 = $3.00), and the dividend is expected to parent at a fixed rate of 5% a year. What is the cost of common legality?

rs = D1/P0 + g latest Stock price (Po)$36 Current Dividend price (D1)$3 Expected dividend growing (g)5% Cost of common candor =13.33% = 3/36 + 5% 10-6. Cost of Equity: CAPM Booher defy Store has a beta of 0.8. The yield on a 3 month T-Bill is 4% and the yield on a 10 year T-Bond is 6%. The market place fortune superior is 5.5%, but the stock market rejoinder in the former years was 15%. What is the estimated cost of common equity utilize the CAPM? rs = rRF + (RPM) bi T-Bill yield4% T-Bond yield (rRF)6% grocery store return15% Market risk premium (RPM)5.5% beta (bi)0.8...If you want to get a practiced essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper