Answer:
After tax cost of debt is 8.82%
Explanation:
Given:
Assume coupon payments are made annually.
Face value (assumed) (FV) = $1,000
coupon rate = 10% or 0.1
Coupon payment (PMT) = $100
Maturity period (nper) = 30
Flotation cost = 0.05×1000 = $50
Discount = 0.05×1000 = $50
Price of debt = Face value - Discount - Flotation cost
= $1000 - 50 - 50
= $900
Calculate rate using spreadsheet function =rate(nper,pmt,PV,FV)
Rate or YTM(yield to maturity) is 11.17%
Tax rate = 21% or 0.21
After tax cost of debt = 0.1117 (1 - 0.21)
= 0.0882 or 8.82%
The suitable portfolio for the young investor is a.) portfolio of with a high percentage of stocks. Stocks are a person's share in a company, giving them profits or losses based on a company's performance. Stocks are highly risky due to the unpredictable performance in the stock market, prices can rise or drop fast. However, the returns of the stocks are higher compared to other financial instruments.
Anywhere between 35 thousand to 100 thousand USD a year
When buying a new backpack, Maria assessed four brands. The evaluative criteria that she used to make a purchase decision were sturdiness, weight, and design.
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