What is firms cost of capital after taxes with a tax rate

Assignment Help Microeconomics

Reference no: EM13685946

A firm's stockholders expect a 15 percent rate of return, and there is a $22 M in common stock and retained earnings. The firm has $9M in loans at an average rate of 7 percent. The firm has raised $14M by selling bonds at an average rate of 5 percent. What is the firm's cost of capital after taxes with a tax rate of 40 percent?

Reference no: EM13685946

Negotiate to arrive at a price

Terry wants to sell his car and the lowest price he is willing to accept is $3,000. Alice likes the car and is willing to pay at most $4,000 for it. They begin to negotiate to

Series data to estimate-population model

Presume you are interested in using time series data to estimate the following population model: yt = Î²0 + Î²1xt + Î²2xt-1 + Î²3xt-2 + Î²4zt-1 + ut a. Based on this populatio

Keynesian expenditures model and the multiplier

Presume that the Japanese economy is in equilibrium according to the Keynesian expenditure model. Now presume that the Tokyo Stock Exchange (as gauged by the Nikkei 225 index)

conducted a study of the iPod listening habits

Arbitron Media Research Inc. conducted a study of the iPod listening habits of women and men. One facet of the study involved the mean listening time. It was discovered that t

Price control policies and welfare economics

The following question depicts the market for oranges from Murray valley, which are sold in units of 90 kilogram boxes. The upward sloping (orange) line represent soppy , and

Discover the cumulative income shares

Quintile 1= 7.2% Quintile 2= 18% Quintile 3= 21% Quintile 4=25% Quintile 5= 29%. The table above shows the income share of each quintile in country X. Is the distribution of i

Relationship between price-short-run marginal cost

Describe the relationship between price, short-run marginal cost, long- run average cost and short-run average cost in the final long-run competitive equilibrium condition. Wh

Present value of the benefit of the additional education

Mike currently earns $20,000 as an unskilled labourer. Presume that by taking courses full-time at a community college for one year, Mike can earn his associate’s degree and q

Reviews

Write a Review

Message

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

User Account

All Pages