What is heuser is after-tax cost of debt

Assignment Help Finance Basics
Reference no: EM13295672

The Heuser Company's currently outstanding bonds have a 7% coupon and a 13% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.

Reference no: EM13295672

Questions Cloud

A positive or negative event : If you owned stock in a company and you heard the company was about to buy back its own stock (Treasury Stock), would you view this as a positive or negative event
Black consciousness movement of the 1960 : The Black Consciousness Movement of the 1960's and 70's promoted the acceptance of African physical features, heritage and culture by African Americans. Big bands like those led by African Americans Duke Ellington, Count Basie and Cab Calloway most o..
Design a multistage op amp based amplifier that has a gain : Design a multistage op ampbased amplifier that has a gain of -900 V/V and a bandwidth of atleast 120 kHz. You have Op Amps with unity gainbandwidths of 2 MHz and 3 MHz. Each has a slewrate of 6 V/ms.
What is the company cost of preferred stock rp : Tunney Industries can issue perpetual preferred stock at a price of $52.50 a share. The stock would pay a constant annual dividend of $5.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.
What is heuser is after-tax cost of debt : If its marginal tax rate is 40%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.
What is the value of the other resistor : n a circuit, a current of 4A is drawn from a battery. The current then divides, What is the value of the other resistor
What is min duration required to maintain the clk input : Consider a 32-bit RC adder unit in which internal carry signals aregenerated using CMOS technology with as few transistors aspossible. Assume that each sum bit is connected to the S input ofthe corresponding gated SR latch.
Majority of stono rebels originate : From where in Africa did the majority of Stono rebels originate?
What will be the portfolio expected rate of return : What do you think will happen to the portfolio's expected rate of return and standard deviation if the portfolio contained 75 percent of Project B?

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the project efficacy

Evaluate the project's efficacy. Is this facility worthwhile, based upon your calculations ? Why or why not ? What does the NPV decision rule indicate for this project ?

  Which of following is the slope of the security marketline

Which of the following is the slope of the security marketline?

  Calculate covariance between the returns of stock a and b

Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.13 and 0.18, respect..

  What is the bank cost of preferred stock

Sixth Fourth Bank has an issue of preferred stock with a $6.40 stated dividend that just sold for $126 per share.

  Dilution effect of stock issue

Micromanagement, Inc. has 8 million shares of stock outstanding and will report earnings of $20 million in the current year. The Corporation is planning the issuance of two million additional shares that will net $30 per share to the corporation.

  Computing interest rate risk

Computing interest rate risk of Both Bond Sam and Bond Dave have 16 percent coupons and make semi-annual payments

  How much should you be willing to pay for this stock

If you require a 14 percent rate of return, how much should you be willing to pay for this stock? A. $56.46 B. $83.65 C. $89.75 D. $62.57

  What is the company cost of equity capital

Bohannon Corporation's common stock has a beta of 1.23. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent.

  What is the bond nominal coupon interest rate

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,175. What is the bond's nominal ..

  What is the bond yield to maturity

You just purchased a bond that matures in 4 years. The bond has a face value of $1,000 and has an 9% annual coupon. The bond has a current yield of 7.63%. What is the bond's yield to maturity? Round your answer to two decimal places.

  What is the net cash flow for ibm

IBM and AT&T decide to swap $1 million loans. IBM currently pays 9.0% fixed and AT&T pays 8.5% on a LIBOR + 0.5% loan. What is the net cash flow for IBM if they swap their fixed loan for a LIBOR + 0.5% loan and LIBOR rises to 8.5%? show work.

  What annual interest rate must they earn

Your parents are retiring in 18 years . they currently have 250,000 and they think they will need 1,000,000 at retirement. what annual interest rate must they earn to reach their goal, assuming they don't save any additional funds.

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