What is the firms after-tax component cost of debt

Assignment Help Finance Basics
Reference no: EM13273508

Ross Inc. has issued a bond. The bond has a 12% coupon, paid semiannually, a current maturity of 20 years, and sell for $1,171.59. The firm's marginal tax rate is 40%. What's the firm's after-tax component cost of debt?

Reference no: EM13273508

Questions Cloud

Compute the equilibrium pressures of all gases : At equilibrium 1.97e-02 mol of NOCl is found in the reaction mixture. Calculate the equilibrium pressures of all gases in the reaction vessel and the value of KP for the reaction. Pick the correct statement from the multiple choices. Use the value..
How many play exactly one of the four sports : How many play exactly one of the four sports? How many play only soccer? How many play only hocley? How many play all four sports?
Calculate the expected rate of return and standard deviation : You are considering investing in a project with the following possible outcomes: Calculate the expected rate of return and standard deviation of returns for this investment.
Explain the specific valence electrons for each element : how many valence electrons do each of the following elements have, and what are the specific valence electrons for each element
What is the firms after-tax component cost of debt : Ross Inc. has issued a bond. The bond has a 12% coupon, paid semiannually, a current maturity of 20 years, and sell for $1,171.59. The firm's marginal tax rate is 40%. What's the firm's after-tax component cost of debt?
Explain the appropriateness of using the ideal gas law : Given a mean free path, comment on the appropriateness of using the ideal gas law to determine the number density of a sample at a critical point.
Evaluate capital budgeting projects : What financial tools are used to evaluate capital budgeting projects, such as NPV, IRR, profitability index, ARR, and payback?
What is the standard deviation of the stock return : what was the stock's return for the missing year? What is the standard deviation of the stock's return?
Explain the equilibrium vapor pressures of water : The equilibrium vapor pressures of water at 25*C and 50*C are 3.16 kPa and 12.51 kPa, respectively. Consider a 1.00 L sample of air at 50*C, with 45% relative humidity, trapped in a rigid cylinder. Suddenly the temperature of the gas is reduced to..

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the firms market value

What will the firm's market value be after the announcement of the new debt issue?

  Calculate the allowances for loan losses

The balance sheet of Tribank starts with an allowance for loan losses of $1.33 million. During the year, TriBank charges off worthless loans of $0.84 million

  Estimation of organizations financial performance

Estimate your selected organization's financial performance over the past two years using financial ratios. Calculate the following ratios for each year

  Settling labor disputes and product liability suits

Bankruptcy plays no role in settling labor disputes and product liability suits. Such issues are outside the bounds of bankruptcy law.

  Explain determining cost of equity and weighted average cost

Explain Determining cost of equity and weighted average cost of capital and after-tax WACC for both firms

  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..

  Question on international finance

Frizzell Corporation has 1,000,000 euros as receivables due in thirty days, and is certain that the euro will depreciate substantially over time. Suppose that the firm is correct,

  Computing ratios impacted by extra debt

How much will each annual payment be? What ratios would be impacted by extra debt? How would you give explanation for this purchase to management?

  Discuss the two material variances that may occur

Discuss the two material variances that may occur, including how they are calculated and reasons for their occurrence.

  Rise and fall of biotech firm

Describe, from a regulatory standpoint, the rise and fall of the biotech firm. It can be any firm, but preferably a US firm.

  Describe two major component of a working capital management

Describe the two major components of a working capital management strategy?

  How much interest you earn if interest is left to accumulate

You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent interest, which is compounded annually until the certificate matures.

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