5x - 2x + 8 = 2 + 6x + 6
Add like terms:
5x - 2x = 3x
2 + 6 = 8
3x + 8 = 6x + 8
To isolate the variable, subtract 6x from both sides of the equation:
3x - 6x = -3x
-3x + 8 = 8
Now subtract 8 from both sides:
8 - 8 = 0
-3x = 0
To finish, divide both sides by -3:
0 ÷ -3x = 0
The answer is x = 0
Hope this helps.
The answer should be -1.8
Answer:
Pretax cost of debt is 5.94%
After tax cost of debt is 4.63%
Step-by-step explanation:
The pretax cost of the debt is the yield to maturity on the debt issuance,which can be computed using the rate formula in excel:
=rate(nper,pmt,-pv,fv)
nper is the number of semi-annual interest payments payable by the bond from year 3 onward ,that is the number of years to maturity 12*2=24
pmt is the semi-annual interest payable by the bond issuer which is face value of the bond ,$1000*5%/2=$25
pv is the current price of the bond which 92% of face value i.e 92%*$1000=$920
fv is the face value of the bond at $1000
=rate(24,25,-920,1000)
rate=2.97%
the rate calculated is a semi-annual rate,annual rate =2.97%*2
=5.94%
The pretax cost of debt is 5.94%
After tax cost of debt=pretax cost of debt*(1-t)
t is the tax rate of 22%
after tax cost of debt =5.94%*(1-22%)
=4.63%
