Question
please provide answers for the following a. outstanding bonds of tech express are priced at 989 and mature in 10 years. these bonds have a
a. outstanding bonds of tech express are priced at 989 and mature in 10 years. these bonds have a 7 percent coupon and pay interest annually. par value is 1000 and tax rate is 35%. what is the firms after tax cost of debt?
options: 4.00, 3.80, 4.65, 3.22, 3.01
b. kelsis has debt equity ratio of 0.6 and tax rate is 35%. the firm does not issue preferred stock, the cost of equity is 14.5% and the after tax cost od debt is 5%. what is the weighted average cost of capital?
options: 10.67, 10.94, 10.86, 11.41, 10.46
c. electronics galore has 950,000 shares of common stock outstanding at market price of 38 a share. the company also has bonds with market value of 42.4 million. what weight should be given to the debt when the firm computes its weighted average cost of capital?
options: 42, 46, 50, 54, 58
d. shoe outlet has paid annual dividends of .65, .70, .72, .75 per share over the last 4 years. the stock is selling at 27 a share. what is the firms cost of equity, assuming they just paid .75 per share as its annual dividend.
options: 7.82, 10.53, 11.91, 7.93, 10.38
e. boulder furniture has bonds outstanding that mature in 15 years, have 6 percent coupon and pay interest annually. these bonds have face value of 1000 and current market price of 1,075. what is the companys after tax cost of debt if the tax rate is 40%?
options: 3.58, 2.97, 5.71, 5.21, 3.16
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