johnnymackjmack4135 johnnymackjmack4135

11-06-2021
Business

contestada

A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, and a tax rate of 21 percent. What is the cost of debt

Respuesta :

abiolataiwo2015 abiolataiwo2015

13-06-2021

Answer:

10.45%

Explanation:

Calculation to determine the cost of debt

B/S = 1.57 − 1

B/S = .57

.156 = .14 + .57(1 −.21)(.14 − RB)

.156 = .14 + .57(.79)(.14 − RB)

RB = .1045*100

RB= 10.45%

Therefore the cost of debt is 10.45%

Answer Link

Otras preguntas

4 important details that establish john lewis character/morals

1. PART A: MANAGEMENT OF ASSETS You have been appointed as the asset manager of KK Traders, the owner Informed you amongst other things, the following findings

The molar concentration of NO3− ions in a 0.054 M solution of Ca(NO3)2 is ______

Significant sea level changes can be traced to changes in the

“Bow, wow, wow said the dog at the door” is this sentence personifaction?

what is the value of x?

Abigail was delivered by emergency caesarean section at only 25 weeks gestation. She was taken to the neonatal intensive care unit (NICU) where she was fed intr

How is the area of the base the same as the volume of the cylinder when the height is 1.please help

Frederick Taylor believed that workers are primarily motivated by money or economic gain, and advocated an incentive pay system to motivate employees. Frederick

https://brainly.com/question/31367495