User Account

All Pages

Cost of debt for use in the wacc calcularion

Assignment Help Finance Basics
Reference no: EM132200052

Unity communications company's noncallable bonds were issued several years ago and now have 15 years to maturity. These bonds have a 12% annual coupon, paid semiannually, sells at a price of $1,070, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calcularion?

5.35%, 5.58%, 5.83%, 6.62%, or 7.33%

Reference no: EM132200052

Questions Cloud

What is hastings required return : If the market return is expected to be 12.40 percent and the risk-free rate is 5.40 percent, what is Hastings' required return?
What is snow white wacc : The firm will not be issuing any new common stock. What is snow White's WACC?
Write a function in matlab that takes as input the number : Write a function in Matlab that takes as input the number of iterations k, the size n, and a sparse matrix A.
What are the nigerians like : What are the "Nigerians" like? Do they have any stereotypical racist features? What role do they play in the film? How do they fit (or not) into the politics of
Cost of debt for use in the wacc calcularion : If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calcularion?
Write a function that returns the index of character c : Write a function that returns a new string consisting of the sequence of characters between the ith and jth index in str char substring.
History of segregation and illegality of miscegenation : In what ways does the novel comment on the history of segregation and the illegality of miscegenation?
In knowledge management what is the analytics : In Knowledge Management What is the Analytics? What is your perspective of "the power of Analytics" ?
Think back over your personal work experiences : Think back over your personal work experiences and share a situation where you worked with a manager or leader who really motivated you.

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the main assets of life insurance companies

What are the main assets of life insurance companies? Identify the main categories. What is the main use of funds by life insurance companies?

  What is the wacc for the funds klose will be raising

The CFO estimates that a proposed expansion would require an investment of $3.4 million. What is the WACC for the funds Klose will be raising? Round your answer to two decimal places.

  Probability that two randomly selected 4-year-old male

(a) What is the probability that two randomly selected 4-year-old male garter snakes will live to be 5 years old? (b) What is the probability that seven randomly selected 4-year-old male garter snakes will live to be 5 years old?

  Reimbursement component of health care

Why did CMS become more involved in the reimbursement component of health care? How does this involvement impact health care organizations?

  Computation of value or price of bond

Computation of value or price of bond thus it makes no coupon payments over the life of the bond

  What is the interest rate that makes the two streams

What is the interest rate that makes the two streams of payments equal? Which do you choose?

  Which bond is the lower coupon bond

You are told that both of these bonds have the same maturity and that the coupon rate of one bond is 7% and of the other is 13%.

  How forecasting methods can deal with trend and seasonality

Repeat parts a, b, and c from the previous problem to see how well these forecasting methods can deal with trend and seasonality.

  Net realizable value of the accounts receivable

After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of $215,000, Uncollectible Accounts Expense has a balance of $17,500, and Allowance for Doubtful Accounts has a balance of $12,500. What is the net realizabl..

  What is the effective interest rate on the libor loan

What is the effective interest rate on the LIBOR loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded.

  Today you deposit 2400 in a bank account that pays 4

today you deposit 2400 in a bank account that pays 4 percent simple interest. how much interest will you earn over the

  Merchandise transactions for the month of january

Ferris Company began 2018 with 4,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2018.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd