Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Determine marginal tax rate?
Ans.
Henkel does not carry debt beyond five years. To determine the cost of debt:
a. For Henkel AG, which Treasury rate at which maturity is most appropriate to use in valuing the cost of debt of the company?
To get the cost of debt, I believe I will use the risk-free rate that I have to use in question 1 part a, and then I will top it up with an extra rate from part b below?
What do you think?
Euro-Denominated Bonds
Rating
1Y
2Y
5Y
10Y
20Y
Treasury2
0.85
1.38
2.53
3.38
4.23
b. Add a default premium based on the company's debt rating by Standard & Poor's. Yields by credit rating can be found on the "Yields" worksheet of the "Select Market Data" spreadsheet.
(If the company's rating is between reported portfolios, interpolate between the nearest ratings)
Don't know what to do.
c. Determine Henkel's marginal tax rate; use the tax reconciliation table in the annual report. Set the marginal tax rate equal to the "tax rate on income."
d. To complete the cost of capital, weight the after-tax cost of debt and cost of equity using the company's year-end capital structure (found in the "Select Market Data" spreadsheet).
Floria Scarpia believes that many of her clients could benefits from using international investments to diversify their portfolios but many are reluctant to invest abroad -especial
explain the concept of working capital management?
Explain about money markets by maturity of the securities. On the basis of the maturity of the securities traded, money markets can be introduced here: Money markets are financ
Determine about the risk management systems Management must report to board their review and implementation of internal controls and risk management systems. The board must rev
Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal
Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer: the conditions when forward exchange rate
Bill Nicholson wants you to help him prepare the financial case for moving the manufacturing operation to Andover. He has specifically expressed interest in getting answers to th
Q. Explain demerits of accept-reject criteria? Demerits of ARR:- (i) It utilizes accounting income rather than cash flows: - The principal short coming of ARR schema is th
what are the basic assumptions of financial management?
TC Shipping Ltd has decided to purchase a machine to augment the company's installed capacity to meet the growing demand for its products. There are three machines under considera
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd