The company's 5% coupon rate with semiannual payments, $1,000 par value bond, maturing in 30 ye ars is selling for $931 95 Company's far rate is 30% What is the component cost of debt for the purpose of calculating WACC? Select one a. Not enough information Ob382% Od1.91%
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- Debt Face Value Market Value Airbnb Public Debt The company debt is currently priced to yield: 13% Company debt is trading at 91% of face value The company's Tax Rate is 23% $5,000,000,000Please do your own work, don't copy from the internet Q5) Calculate the aftertax cost of debt under each of the following conditions: Yield Corporate Tax Rate a. 8.0% 18% b. 12.0% 34% c. 10.6% 15% Solution: Kd = Yield (1 – T) Yield (1 – T) Yield (1 – T) 8.0% (1 – .18) 12.0% (1 – .34)Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% %$4 1700 8% Fixed rate $500 9% $1500 5% Non earning $ 5100 $. 1800 Equity 1900 Total $ 6900 $6900 What is the Net Interest Margin (NIM)
- Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10 4% with semiannual payments, and will use an investment bank that charges $20 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $980.40 b. $994 65 c. $1,066 78 d. $1,176 66Calculate the aftertax cost of debt under each of the following conditions. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) raw C. Yield 8.0% 8.6 % 6.5 % Corporate Tax Rate 22 % 25 % Aftertax Cost of Debt % % %Do Question 22 Rank XYZ ha the illwg kvie hlance sheet tenpeed s of doll Assets Liabilities 5-year Short-term Loans 750 950 CDs Net Long-term Loans 250 50 Worth The short-tems loans are zero coupon and repaid at the end of 1 year. The Long-term loans are zero coupon loans that mature in 5 years. On the liability side, the 5-year CDs are also zero coupon. Assume that the yield curve is flat and interest rates are 10% today. Suppose you want to duration hedge the bank's equity by buying a 6-year Treasury STRIP financed with overnight borrowing in the interbank market. How would you hedge against a 1% increase in interest rates using STRIPS? O Short 458 million O Long 458 million O Long 500 million O Short 500 million O Long 550 million
- Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.6% with semiannual payments, and will use an investment bank that charges $20 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $959.56 b. $992.39 c. $1,060.96 d. $1,144.77 ACCES a. What is the cost of debt for Kenny Enterprises at a market price of $959.56? % (Round to two decimal places.)ou Answered rrect Answer The Crystal Center has issued bonds that will pay $42 one year from today. Then going forward this amount will increase by 3.8% each year forever. If these bonds are selling for $846, what is the discount rate for the bonds? (Please enter your answer as a whole number to two decimal places. i.e. 2.25, not 0.0225) 22,263.16 8.76 margin of error +/-0.01The following bond was quoted in The Wall Street Journal: Net change close 100.875% Current yield Volume Bonds NJ 4.125% 35 1.7% +1.0625% Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more did the 5 bonds cost today? (Do not round intermediate calculations. Round your answer to the nearest cent.) Increased cost < Prev 18 of 18 Next ...**. M
- K The outstanding debt of Berstin Corp. has eight years to maturity, a current yield of 9%, and a price of $80. What is the pretax cost of debt if the tax rate is 30%. A. 7.5% B. 10.8 % OC. 6.5 % OD. more information neededCost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.8% with semiannual payments, and will use an investment bank that charges $30 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $931.44 b. $1,013.16 c. $1,102.27 d. $1,152.27 ..... a. What is the cost of debt for Kenny Enterprises at a market price of $931.44? |% (Round to two decimal places.)14. A P1000 000.00 issue of 3%, 15-year bonds is sold at 95% The miscellaneous initial expense of the financing were P20 000 00 and yearly expenses of P2000 00 is incurred What is the true cost the company is paying for the money it borrowed? (Ans. 3.8%) Please use a written formula instead of screenshot of your excel please!