Determining the company tax rate

Assignment Help Business Economics
Reference no: EM132286087

TIran Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 4.9 percent Semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.15; the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 8.3 percent, T-bills are yielding 4 percent, and the company's tax rate is 25 percent.

What is debt

What is equity

What is discount rate=?%

Reference no: EM132286087

Questions Cloud

Does a defendant have a right to counsel at a lineup : Does a defendant have a right to counsel at a lineup? If so, what is the source of that right?
Describe principles set forth by the european futurists : Compare and contrast the principles set forth by the European Futurists with those of the Garden City proponents. Be sure to include both similarities.
What is the current stock price : A stock just paid a dividend of D0 = $0.6. The required rate of return is rs = 15.5%, and the constant growth rate is g = 7.3%. What is the current stock price?
Chaos as well as clear sense of purpose in organizations : Hypothesize why it is important for leaders both to create and enable chaos as well as a clear sense of purpose in organizations.
Determining the company tax rate : The market risk premium is 8.3 percent, T-bills are yielding 4 percent, and the company's tax rate is 25 percent.
Identify the important facts in the case study : What decisions were or were not made in the case study? Do you believe the decisions or best practices were appropriate?
Capital structure weights on a market value basis : A. What is the,company's capital structure weights on a book value basis? B. What are the company"s capital structure weights on a market value basis?
How are project forms and spatial relationships meaningful : 2,500-word essay which extends the previous assignment's analyses to interpret the work in relation to its cultural, social, political and environmental.
Explain the senior expectative service : Explain the Senior Expectative Service (SES). Discuss what it was, what is it now, and what appears it will be in the future?

Reviews

Write a Review

Business Economics Questions & Answers

  Municipality and his marginal tax rate

If the investor holds the bond until it matures and collects the $1000 par value from the municipality and his marginal tax rate is 34 percent

  Stockholder theory of neglecting the interests of employees

Concerning the Purpose of the Corporation, recall that Ed Freeman’s stakeholder theory accused Milton Friedman’s stockholder theory of neglecting the interests of employees, vendors, customers and the general public and of being basically immoral. Ye..

  Negligence and multiparty liability

Negligence and Multiparty Liability. Alice Banks was injured when a chair she was sitting on at an Elks club collapsed. As a result of her injury, Dr. Robert Boyce performed surgery on her back, fusing certain vertebrae. Did the Elks club have primar..

  Rules based on culture-religious codes-societal constraints

But what about the unwritten or informal rules of doing business there—rules based on culture, religious codes, and societal constraints? Sometimes these laws can be very different from those in one’s home country or in other countries in which one i..

  Determine the optimum replacement interval

The engineering firm is considering to keep the crane for future projects. The cost of the crane is the one described in problem 2 (including transportation costs). Its market value at the end of year one will be $300,000 decreasing by 15% every year..

  Salesman for another company is offering replacement

Machine A was purchased last year for $20,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next five years. A salesman for another company is of..

  Focusing on a single sport

Studies show that young athletes are increasingly focusing on a single sport. Do you think this is a good idea?

  The effect on economy of tax reduction and simplification

The effect on the economy of tax reduction and simplification is

  Predatory pricing-what is so bad about price fixing

Apex Manufacturing charges Zenith Manufacturing with predatory pricing (that is, selling below cost) What do you think anti-trust authorities will want to consider before they determine whether prosecute Zenith for unfair practices in restraint of tr..

  Develop a choice table for nominal interest rates

(a) Develop a choice table for nominal interest rates from 0% to 50%. (You do not know what the reader's interest rate is.)

  Would these fortescue bonds be an attractive asset

Would these Fortescue bonds be an attractive asset for investors? Why or why not?

  Offered to risk-averse individual to willingly accept gamble

What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?

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