Question: ....help. answer all 3 please. p Problem 4 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate



Problem 4 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.1% and a yield to maturity of 5%. Simple Corp 's average tax rate is 18% and its marginal tax rate is 29%. Part 1 What is the (pre-tax) cost of debt? 3+ decimals Submit Part 2 What is the after-tax cost of debt? 4+ decimals Submit BAttempt 1/10 for 1 pts. BAttempt 1/10 for 1 pts. Problem 7 Intro The risk-free rate is 1.5% and the expected return for the market is 8%. Assume that the CAPM holds Part 1 What is the cost of equity for stock 1? 3+ decimals Submit Part 2 What is the cost of equity for stock 27 3+ decimals Security Stock 1 Stock 2 Stock 3 Submit Part 3 What is the cost of equity for stock 37 4+ decimals Beta 1.3 1.2 0.3 BAttempt 1/10 for 1 pts. BAttempt 1/10 for 1 pts. B Attempt 1/10 for 1 pts > Problem 5 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 4%, a face value of $1,000 and a price of $922.78, which matures in 10 years. The company's tax rate is 29%. Part 1 What is Lugget's pre-tax cost of debt? 3+ decimals Submit Part 2 What is the company's after-tax cost of debt? 4+ decimals Submit >>> B Attempt 1/10 for 1 pts. BAttempt 1/10 for 1 pts
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
