First one is: Hossain Health has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company has $5,000 in debt that is selling at par. The levered value of the firm is $ 14, 600 and the tax rate is 25 percent. What is the pretax cost of debt?
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- Clifford, Inc., has a target debt-equity ratio of .80. Its WACC is 9.1 percent, and the tax rate is 25 percent. a. If the company's cost of equity is 13 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 5.8 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of debt % b. Cost of equity %Ursala, Incorporated, has a target debt-equity ratio of 1.25. Its WACC is 8.4 percent and the tax rate is 23 percent. If the company’s cost of equity is 12.4 percent, what is its pretax cost of debt? If instead you know that the aftertax cost of debt is 3.6 percent, what is the cost of equity?The DENC Corporation has the unlevered cost equity of 10%. The company wants to expand its operation by issuing new debt. If the cost of debt for the company is 6% and the corporate tax rate is 30%. What must be the debt-equity ratio of the company if the targeted cost of equity is 12%? Calculate the debt-equity (D/E) ratio. (A) The debt-equity (D/E) ratio is 0.50 (B) The debt-equity (D/E) ratio is 0.60 (C) The debt-equity (D/E) ratio is 2.80 (D) The debt-equity (DE) ratio is 0.71
- WACC Kose, Inc., has a target debt- equity ratio of .65. Its WACC is 11.2 percent, and the tax rate is 35 percent. a. If Kose's cost of equity is 15 percent, what is its pretax cost of debt? b. If instead you know that the aftertax cost of debt is 6.4 percent, what is the cost of equity?Roy's Welding has a cost of equity of 14.1 percent and a pretax cost of debt of 7.7 percent. The required return on the assets is 13.2 percent. What is the debt-equity ratio based on M&M II with no taxes?Spot Company’s balance sheet consists of the following: $790 million and $230 million. Its current after-tax cost of debt is 4% and its cost of equity is 8%. You have been analyzing various market factors and have estimated that the market value of its debt is currently $760 million and the market value of the equity is $690 million. Furthermore, you believe that given current market conditions and the existence of flotation costs, the marginal after-tax cost of debt would be 70 basis points higher than the existing after-tax cost of debt and the marginal cost of equity would be 130 basis points higher. What is the difference in the company's Weighted Average Cost of Capital (WACC) based on the market-based data and the book-value data? Subtract the book value WACC from the market value WACC and present your answer in percentage terms, rounded to decimal places (e.g., 1.23%].Round your answer to 2 decimal places. Please show all work including how to set up in excel. Note:- Do not…
- Caddy manufacturing has a target debt equity ratio of .45. Its cost of equity is 10.3%, and its pre- tax cost of debt is 6.4%. If the tax rate is 21%, what is the company's WACC ? Pls type in computer! ThanksKey Motors has a cost of equity of 14.26 percent and an unlevered cost of capital of 11.34 percent. The company has $35,000 in debt that is selling at par value. The levered value of the company is $79,000 and the tax rate is 21 percent. What is the pretax cost of debt?Lannister Manufacturing has a target debt-equity ratio of 0.62. Its cost of equity is 18 percent, and its cost of debt is 11 percent. If the tax rate is 33 percent, what is the company's WACC? ANSWER: 13.93% don't know the steps.
- ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 9 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 6.6 percent annually. What is the company's pretax cost of debt? If the tax rate is 24 percent, what is the aftertax cost of debt? Pretax cost of debt: __________% Aftertax cost of debt: __________%Lannister Manufacturing has a target debt-equity ratio of 0.62. Its cost of equity is 18 percent, and its cost of debt is 11 percent. If the tax rate is 33 percent, what is the company's WACC?Sixx AM Manufacturing has a target debt-equity ratio of 0.7. Its cost of equity is 17 percent, and its cost of debt is 11 percent. If the tax rate is 32 percent, what is the company's WACC?