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Please answer questions 1,3,5 and 7 only please (After-tax cost of debt) Calculate the after-tax cost of debt under each of the following conditions a.

Please answer questions 1,3,5 and 7 only please image text in transcribed
(After-tax cost of debt) Calculate the after-tax cost of debt under each of the following conditions a. A tax rate of 37%, and a yield to maturity of 7.9% b. A tax rate of 25%, and a pre-tax cost of debt of 10.2% c. A tax rate of 0%, and a yield to maturity of 7.9% (After-tax cost of debt) Melbourne, Inc. currently has 3% bonds with a yield to maturity of 4.5%. If it is in the 35% marginal tax rate, what is its after-tax cost of debt? (After-tax cost of debt) FitBite, Inc. currently has an outstanding bond that pays interest annually, a coupon rate of 6%, and 5 years until maturity. If it in the 35% marginal tax rate what is its after-tax cost of debt? What is the after-tax cost of debt if it pays interest annually? (Cost of preferred stock) A company pays an annual perpetual dividend of $3.00 on its preferred stock that is current valued at $45.56. What is its after-tax cost of preferred stock? (Cost of preferred stock, w/flotation) A company plans to pay an annual perpetual dividend of $2.00 on its newly issued preferred stock that is current valued at $45. If it faces a 5% flotation cost on this issue, what is its after-tax cost of preferred stock? (Cost of common stock, retained earnings) A common stock priced at $78.56 pays an annual dividend of $2.50 which is expected to growth indefinitely at 5% annually. What is its component cost of capital? What is the investor's opportunity cost? (Cost of common stock, retained earnings) CJ, Inc's common stock has a beta coefficient of 1.5. The risk premium is 8% and the risk-free rate of interest is 1.5%. What is CJ's component cost common (Cost of common stock, retained earnings) Lemmond, Inc's common stock has a beta coefficient of 1.0. The expected return of market 12% and the risk-free rate of

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