What is the component after tax cost of debt for use in WACC

Assignment Help Financial Management

Reference no: EM131920228

1. Jakbe company issued $1000 par value, non-collable bond that now has 29 years to maturity and 7% annual coupon that's paid semiannually. the bonds sells for &1045 and the company's tax rate is 40%. what's the component after tax cost of debt for use in the WAAC calculations?

2. Johnny Come Lately Computers (JCMC) has 20,000 bonds outstanding, selling at 98 percent of par; 300,000 shares of stock outstanding, selling at $32.71 per share; and 50,000 shares of preferred stock, trading at $82 per share. What weight will common stock have in the computation of the firm's WACC?

Reference no: EM131920228

Questions Cloud

Calculate the total liabilities and stockholders equity : The balance sheet for Farber Corporation at December 31, 2018, showed the following subtotals: calculate the Total liabilities and stockholders equity

Describe teaching experience and discuss your observations : This is an individual assignment. In 1,500-2,000 words, describe the teaching experience and discuss your observations.

What does the publics ability to adapt to challenges have : What does the public's ability to adapt to challenges have to do with the recruitment of new board members?

Does the memorandum use the sec plain english concepts : Read Appendix A, Sample Brief Memorandum, which starts on page 189 of our textbook. In 2-3 pages (12-point font, double spaced), critique the memorandum based.

What is the component after tax cost of debt for use in WACC : what's the component after tax cost of debt for use in the WAAC calculations?

Develop an analysis of potential risks your new ems program : Develop an analysis of potential risks your new EMS program or service may encounter. Discrimination or other legal violations .

How can nurses help older adults in avoiding the problems : How can nurses help older adults in avoiding the problems of polypharmacy and organizing their medications in an easy to understand and use format.

What is the company cost of retained earning : If new common stock is issued, the company will incur floatation cost of 6%. what's the company's cost of retained earning?

Explain a cyberterrorism related danger faced by the us : Write a paper that identifies and thoroughly explains a cyberterrorism related danger faced by the United States today and/or in the future.

User Account

All Pages