The firms Cost of Debt is 9.62%.
Data and Calculations:
Weighted average cost of capital = 11.68%
Cost of equity = 15.5%
Debt-Equity Ratio = 0.65
Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity
= 11.68% - (15.5% (1 - 0.65)
= 11.68% - 5.425%
= 6.255%
Unweighted cost of debt = 6.255%/0.65
= 9.62%
Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.
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Answer: Credit, $45,000
Explanation:
The bond payable is the interest payable on the bond and it's Bond issued value mutiply by issued rate
$50,000 * 9%* 10 years
Answer: <em>True</em>
Explanation:
The following statement is true, i.e. In accordance to the equity theory, she will try to change the working habits. The equity theory mostly concentrates on evaluating whether the allocation of commodities and resources is impartial to both of the relational partners. Here, equity is evaluated by contrasting the ratio in between the costs and rewards for each individual.
Answer:
Amount saved by the owner is $225.
Explanation:
given,
the property has been assessed = $40,000
the city tax rate = 10 mills = 0.001
country tax rate = 9 mills = 0.009
school board levy = 9 mills = 0.008
owner gets homestead tax exemption of = ?
Homestead tax exemption is used to same money from paying tax on their property every year.
homestead tax exemption given is $25,000
Money saved by owner = $25,000 homestead exemption × county tax rate
= $25000 × 0.009
= $ 225
Amount saved by the owner is $225.