subject
Business, 23.11.2019 02:31 alexalvarez304

For which capital component must you make a tax adjustment when calculating a firm’s weighted average cost of capital (wacc)?
a. debt
b. equity
c. preferred stock
omni consumer products company (ocp) can borrow funds at an interest rate of 12.50% for a period of seven years. its marginal federal-plus-state tax rate is 30%. ocp’s after-tax cost of debt is (rounded to two decimal places).
at the present time, omni consumer products company (ocp) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,382.73 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 30%. if ocp wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 12:50
Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false
Answers: 3
question
Business, 22.06.2019 13:10
Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .
Answers: 1
question
Business, 22.06.2019 19:30
Problem page a medical equipment industry manufactures x-ray machines. the unit cost c (the cost in dollars to make each x-ray machine) depends on the number of machines made. if x machines are made, then the unit cost is given by the function =cx+−0.3x2126x31,935 . how many machines must be made to minimize the unit cost?
Answers: 3
question
Business, 23.06.2019 00:20
E11-2 (multiple choice) identify the best answer for each of the following: which of the following statements about internal service fund liabilities is false? internal service funds may report both current and long-term liabilities. internal service funds may not issue bonds for financing purposes. internal service funds may report contingent liabilities. due to other funds would be reported as a current liability
Answers: 3
You know the right answer?
For which capital component must you make a tax adjustment when calculating a firm’s weighted averag...
Questions
question
English, 26.12.2021 01:10
question
English, 26.12.2021 01:10
question
Mathematics, 26.12.2021 01:20
question
Mathematics, 26.12.2021 01:20