Answer:
The correct answer is 4.33%(approx)
Explanation:
According to the scenario, the given data are as follows:\
Face value = $1,000
Market price = $1,278.41
Coupon Rate = 11%
So Coupon Payment = $110
Years to maturity = 10 years
So, we can calculate the after tax cost of debt by using following method:
After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)
Where, YTM = 
So, by putting the following value, we get
YTM = 0.0721
So by putting the value in formula, we get
After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)
= 4.33% (approx)
Answer:
$29 per stock
Explanation:
WACC=PBIT*(1-tax)/Market value of firm
10%=$20,000,000*(1-40%)/Market Value of the firm
Market Value of the firm=$20,000,000*60%/10%=$120,000,000
Stock price for all shares=$120,000,000*60%=$72,000,000
Stock price per share=$72,000,000/2,500,000=$29 per share
If for every $10 increase sales drop by 3 units when you increase to $300 you will lose 30 units.
($10)(10) = 100
(10)(3) = 30
60 units - 30 units = 30 units.
($300)(30) = $9,000 is your weekly revenue at a price of $300 per unit.
Answer:
The explanation of this question is given below in the explanation section.
Explanation:
In this question, it is asked about to select one project among two given project based on the evaluation criteria. These evaluation criteria include:
- Proven technology
- Ease of transition
- Projected cost saving
Based on my analysis, I will select the project cairso because It has high transition and high projected cost saving.
The analysis of these project is shown in attached picture with this solution.