Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need the answer for Question 4 please. Common stock: 100,000 shares outstanding. $40 per share, beta-1.3 Bonds: 1,000 bonds outstanding, $1,000 face value

I just need the answer for Question 4 please. image text in transcribed
Common stock: 100,000 shares outstanding. $40 per share, beta-1.3 Bonds: 1,000 bonds outstanding, $1,000 face value each, 6% coupon paid semiannually, 19 years to maturity, market price of $1,305 per bond. Market risk premium=4.5%, yield on 30 day Treasury Bill= .5%, marginal tax rate 34% Question 1 (0.5 points) What is Rex Inc's Weight of Debt? Question 2 (0.5 points) What is Rex Inc's Weight of Equity? Question 3 (1 point) What is Rex Inc's Before Tax Cost of Debt? Question 4 (1 point) What is Rex Inc's After Tax Cost of Debt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions