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Please answer all the questions Flotation costs and the cost of debt Currently, Warren Industries can sel 20 year, 51,000 par value bonds paying annual
Please answer all the questions
Flotation costs and the cost of debt Currently, Warren Industries can sel 20 year, 51,000 par value bonds paying annual interesante Because current market rates for similar bonds are just under 9%, Warren can see its bonds for $1,050 each. Waren wil nou flotutun coda di pertand firm is in the 26% tax bracket a. Find the net proceeds from the sale of the bond, No b. Calculate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond, No, is $ 1015. (Round to the nearest dollar) b. The before-tax cost of debt is % (Round to two decimal places) LOVE cost of common stock equity Ross Textiles wishes to measures cost of common stock equity Themistocking for the recently paid a dividend of $4.05. The firm has been increasing dividends regularly five years ago, the dividend we After underpricing and flotation costs, the firm expects to net 537 69 per share on a news a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company spy b. Determine the net proceeds, Nthat the firm will actually receive c. Using the constant-growth valuation model determine the required return on the company's stocks which should equal the cost of redag d. Using the constant-growth valuation model determine the cost of new common stock a. The average annual dividend growth rate over the past 5 years is 0% (Round to two decimal places) Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retaned earnings and the cand a new common stock using the constant growth valuation model (Click on the loon here in order to copy the contents of the data ile below to spreadsheet Projected Current market Dividend dividend per Underpricing Flotation cost price per share growth rate share next year per share 55200 9% $3.12 $1.00 $1.75 per share a. The cost of retained earnings is % (Round to two decimal places) Before tax cost of debt and after tax cost of debt David Abbotin buying a new house, and he is taking out a year marga Dwiwib a bank, and to repay the loan he will make 360 monthly payments (principal and interest of 51.145 90 per month over the years David payments on his mortgage from his taxable income, and based on his income, David is in the 32% tax bracket a. What is the before tax interest rate (per year) on David's loan? b. What is the after-tax interest rate that David is paying? a. The boforo-tax interest rate (per year) on Davier's loan is [* (Roond to two decimal places) Flotation costs and the cost of debt Currently, Warren Industries can sel 20 year, 51,000 par value bonds paying annual interesante Because current market rates for similar bonds are just under 9%, Warren can see its bonds for $1,050 each. Waren wil nou flotutun coda di pertand firm is in the 26% tax bracket a. Find the net proceeds from the sale of the bond, No b. Calculate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond, No, is $ 1015. (Round to the nearest dollar) b. The before-tax cost of debt is % (Round to two decimal places) LOVE cost of common stock equity Ross Textiles wishes to measures cost of common stock equity Themistocking for the recently paid a dividend of $4.05. The firm has been increasing dividends regularly five years ago, the dividend we After underpricing and flotation costs, the firm expects to net 537 69 per share on a news a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company spy b. Determine the net proceeds, Nthat the firm will actually receive c. Using the constant-growth valuation model determine the required return on the company's stocks which should equal the cost of redag d. Using the constant-growth valuation model determine the cost of new common stock a. The average annual dividend growth rate over the past 5 years is 0% (Round to two decimal places) Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retaned earnings and the cand a new common stock using the constant growth valuation model (Click on the loon here in order to copy the contents of the data ile below to spreadsheet Projected Current market Dividend dividend per Underpricing Flotation cost price per share growth rate share next year per share 55200 9% $3.12 $1.00 $1.75 per share a. The cost of retained earnings is % (Round to two decimal places) Before tax cost of debt and after tax cost of debt David Abbotin buying a new house, and he is taking out a year marga Dwiwib a bank, and to repay the loan he will make 360 monthly payments (principal and interest of 51.145 90 per month over the years David payments on his mortgage from his taxable income, and based on his income, David is in the 32% tax bracket a. What is the before tax interest rate (per year) on David's loan? b. What is the after-tax interest rate that David is paying? a. The boforo-tax interest rate (per year) on Davier's loan is [* (Roond to two decimal places) Step by Step Solution
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