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garik1379 [7]
3 years ago
9

Cost of debt For which capital component must you make a tax adjustment when calculating the weighted average cost of capital (W

ACC) for a firm? Preferred stock Debt Equity Bedrick Co. can borrow at an interest rate of 12.5% for a period of six years. Its marginal federal-plus-state tax rate is 35%. What is Bedrick's after-tax cost of debt? Bedrick Co. has outstanding 10-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1,092.79 and an annual coupon rate of 11%. The company faces a tax rate of 35%. If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt? 7.43% 6.19% 5.57% 7.12%
Business
1 answer:
professor190 [17]3 years ago
5 0

Answer:

your dog

Explanation:

because its your dog

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