Question: I just need the answer for Question 4 please. Common stock: 100,000 shares outstanding. $40 per share, beta-1.3 Bonds: 1,000 bonds outstanding, $1,000 face value

I just need the answer for Question 4 please.

Common stock: 100,000 shares outstanding. $40 per share, beta-1.3 Bonds: 1,000 bonds outstanding, $1,000 face value each, 6% coupon paid semiannually, 19 years to maturity, market price of $1,305 per bond. Market risk premium=4.5%, yield on 30 day Treasury Bill= .5%, marginal tax rate 34% Question 1 (0.5 points) What is Rex Inc's Weight of Debt? Question 2 (0.5 points) What is Rex Inc's Weight of Equity? Question 3 (1 point) What is Rex Inc's Before Tax Cost of Debt? Question 4 (1 point) What is Rex Inc's After Tax Cost of Debt

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Use the following information for problems 46 through 49: Common stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 0.8 Preferred stock: 200,000 shares outstanding, $44 per...

8) Given the following information, what is WBM Corporation's WACC? CALCULATION 14 marks Common Stock 1 million shares outstanding $40 per share, $ 1 par value B = 1.0 Bonds 10,000 bonds outstanding...

Given the following information, what is the companys WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3 Bonds: 10,000 bonds outstanding, $1,000 face value...

Given the following information what is the WACC? Common stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3. Bonds: 10000 bonds outstanding, $1,000 face value each, 8%...

Use the following information for problems 46 through 49: Common stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 0.8 Preferred stock: 200,000 shares outstanding, $44 per...

1. Ed Lawrence has invested $100,000. Of that, $30,000 is invested in IBM stock, $25,000 is invested in T-bills, and the remainder is invested in corporate bonds. Which of the following is true...

QUESTION 10 Given the following information, what is the WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3 Bonds: 10,000 bonds outstanding. $1,000 face value...

Given the following information, what is WBM Corporation's WACC? Common Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3 Bonds: 10,000 bonds outstanding, $1,000 face value...

Giuseppina's Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $24 per hour. A glass blower blows 10 flanges per hour....

1. Describe the nature and causes of the problem faced by Sweeny. 2. What additional questions should Sweeney ask or what additional information is needed before proceeding toward a solution to this...

The information content of annual earnings announcements and mandatory adoption of IFRS By Landsman, Maydew and Thornock Summary: The authors find that information content of earnings announcements,...

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Evaluate the importance of the employee handbook.

Discuss three major differences in international healthcare management that human resource (HR) management must address.

Discuss the steps in the progressive discipline approach.