This is the information.
questions are below.
a. what is the firms after-tax cost of debt on the bond
b. compute the cost of external common equity for the firm
c. compute the cost of internal common equity for the firm
d. The cost of preferred stock
e. The after-tax cost of debt financing
Homework: Chapter 9 Homework Score: 0 of 1 pt 1 of 7 (4 complete) Problem 9-2 (similar to) (Individual or component costs of capital) Compute the cost of the following a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a floatation cost tax rate is 30 percent and its marginal tax rate is 22 percent b. A new common stock issue that paid a $1.50 dividend last year. The par value of the stock is $15, and earnings per share have grown at a future. The company maintains a constant dividend-earnings ratio of 30 percent. The price of this stock is now $29, but 8 percent flotation cos c. Internal common equity when the current market price of the common stock is $47 The expected dividend this coming year should be $3.0 22 percent d. A preferred stock paying a dividend of 9 percent on a 5130 par value. If a new issue is offered, flotation costs will be 15 percent of the curre e. A bond selling to yield 12 percent after flotation costs, but before adjusting for the marginal corporate tax rate of 22 percent. In other words, of the future cash flows (principal and interest) a. What is the firm's after-tax cost of debt on the bond? 1036,95% (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer Clear All 4. orkid 557038561&questionid=1&flushed=false&cid=63452248 centerwinyes Haylie Gerber 03/25/21 1:26 PM amework Save 1 of 7 (4 complete) HW Score: 42.86%, 3 of 7 pts Question Help of the following act or coupon Interest rate of 7 percent. A new issue would have a floatation cost of 7 percent of the $1,115 market value. The bonds mature in 14 years. The firm's average year. The par value of the stock is $15, and earnings per share have grown at a rate of 9 percent per year. This growth rate is expected to continue into the foreseeable ratio of 30 percent. The price of this stock is now $29, but 8 percent flotation costs are anticipated ea common stock is $47 The expected dividend this coming year should be $3.00, increasing thereafter at an annual growth rate of 8 percent. The corporation's tax rate is par value. If a new issue is offered, flotation costs will be 15 percent of the current price of 5168 mafore adjusting for the marginal corporate tax rate of 22 percent. In other words, 12 percent is the rate that equates the net proceeds from the bond with the present value Clear All Check Answer 27 PM Homework: Chapter 9 Homework Score: 0 of 1 pt 1 of 7 (4 complete) Problem 9-2 (similar to) (Individual or component costs of capital) Compute the cost of the following a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a floatation cost tax rate is 30 percent and its marginal tax rate is 22 percent b. A new common stock issue that paid a $1.50 dividend last year. The par value of the stock is $15, and earnings per share have grown at a future. The company maintains a constant dividend-earnings ratio of 30 percent. The price of this stock is now $29, but 8 percent flotation cos c. Internal common equity when the current market price of the common stock is $47 The expected dividend this coming year should be $3.0 22 percent d. A preferred stock paying a dividend of 9 percent on a 5130 par value. If a new issue is offered, flotation costs will be 15 percent of the curre e. A bond selling to yield 12 percent after flotation costs, but before adjusting for the marginal corporate tax rate of 22 percent. In other words, of the future cash flows (principal and interest) a. What is the firm's after-tax cost of debt on the bond? 1036,95% (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer Clear All 4. orkid 557038561&questionid=1&flushed=false&cid=63452248 centerwinyes Haylie Gerber 03/25/21 1:26 PM amework Save 1 of 7 (4 complete) HW Score: 42.86%, 3 of 7 pts Question Help of the following act or coupon Interest rate of 7 percent. A new issue would have a floatation cost of 7 percent of the $1,115 market value. The bonds mature in 14 years. The firm's average year. The par value of the stock is $15, and earnings per share have grown at a rate of 9 percent per year. This growth rate is expected to continue into the foreseeable ratio of 30 percent. The price of this stock is now $29, but 8 percent flotation costs are anticipated ea common stock is $47 The expected dividend this coming year should be $3.00, increasing thereafter at an annual growth rate of 8 percent. The corporation's tax rate is par value. If a new issue is offered, flotation costs will be 15 percent of the current price of 5168 mafore adjusting for the marginal corporate tax rate of 22 percent. In other words, 12 percent is the rate that equates the net proceeds from the bond with the present value Clear All Check Answer 27 PM
