1. for which capital component mess you make a tax adjustment when calculating affirms weighted average cost of capital.

2. andusian limited can borrow funds at an interest rate of 10.20% for a period of eight years it's marginal federal plus state tax rate is 25% als after tax cost of debt is what? Round to two decimal places.

3. if AL wants to issue new debt what would be a reasonable estimate fourth after tax cost of death round to two decimal places?

2. An overview of a firm's cost of debt For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACc)? Preferred stock Equity Debt Andalusian timited (AL) can borrow funds at an interest rate of 10.20% for a period of eight years. Its marginal federal-plus-state tax rate is 25%. AL's after-tax cost of debt is (rounded to two decimal places). At the oresent time, Andaluslan Limited (AL) has 15 year noncallabie bonds with a face value of $1,000 that are cutstanding. These bonds thave a current matket price of $1,555.38 per bond, carry a coupon rate of 11%6 and distribute annual coupon payments. The company incurs a federal-plus. state tax rate of 25%. If AL wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 4,936% 4.119 4.734 13.29% 2. An overview of a firm's cost of debt For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (wacc)? Preferred stock Equity Debt Andalusian Limited (AL) can borrow funds at an interest rate of 10.20% for a period of eight years. Its marginal federal-plus-5tate tax rate is 25%. AL's after-tax cost of debt is (rounded to two decimal places). At the present time, Andalusi 7.65% (AL) has 15-year noncallable bonds with a face value of 51,000 that are outstanding. These bonds have a current market price of 51,55,10.20% ond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plusstate tax rate of 25\%\%. If At. v ue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your two decimal place.) 4.936 4.11% 4.736 3.298