Question
1. XYZ has an outstanding bond. It's a 4% semiannual coupon bond maturing in 4 years with a par value of $100 and is trading
1. XYZ has an outstanding bond. It's a 4% semiannual coupon bond maturing in 4 years with a par value of $100 and is trading at $95. Income tax rate is 25%. Calculate the after-tax cost of debt for XYZ.
2.A company finances its operations with 47 percent debt and the rest using equity. The annual yield on the company's debt is 4.3% and the required rate of return on the stock is 12.2%. What is company's WACC? Assume the tax rate is 30%Round the answer to the nearest 2 decimal percentage points. For example, if your answer is 12.345%, then enter 12.35
3.Dealer 1 offers the following exchange rates:
1 USD = 0.8 CAD 1 USD = 1.367 GBP Dealer 2 offers the following exchange rates: 1 GBP= 0.981 CAD
What is the arbitrage profit on $63,971?
Enter your answer round off two two decimal points.
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