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ABC Corporation has the following capital items and $200,000 in retained earnings too, and an income tax rate of 25% Source Amount YTM of 6% payable annually 15 year bonds 8 year loan: APR of 7% payable monthly Common stock: ABC's cost of equity was estimated in 14% Compute the after tax weighted average cost of capital for ABC ABC's after tax cost of debt is % (Round to two decimal places) 4 ABC's after tax weighted average cost of capital is % (Round to two decimal places) $250,000 $150,000 $400,000 CLIEB

ABC Corporation has the following capital items and $200,000 in retained earnings too, and an income tax rate of 25% Source Amount YTM of 6% payable annually 15 year bonds 8 year loan: APR of 7% payable monthly Common stock: ABC's cost of equity was estimated in 14% Compute the after tax weighted average cost of capital for ABC ABC's after tax cost of debt is % (Round to two decimal places) 4 ABC's after tax weighted average cost of capital is % (Round to two decimal places) $250,000 $150,000 $400,000 CLIEB

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 1P
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ABC Corporation has the following capital items and $200,000 in retained earnings too, and an income tax rate of 25% Source Amount YTM of 6% payable annually 15 year bonds 8 year loan APR of 7% payable monthly Common stock: ABC's cost of equity was estimated in 14% Compute the after tax weighted average cost of capital for ABC. ABC's after tax cost of debt is% (Round to two decimal places) k ABC's after tax weighted average cost of capital is % (Round to two decimal places) $250,000 $150,000 $400,000 CHEES
Transcribed Image Text:ABC Corporation has the following capital items and $200,000 in retained earnings too, and an income tax rate of 25% Source Amount YTM of 6% payable annually 15 year bonds 8 year loan APR of 7% payable monthly Common stock: ABC's cost of equity was estimated in 14% Compute the after tax weighted average cost of capital for ABC. ABC's after tax cost of debt is% (Round to two decimal places) k ABC's after tax weighted average cost of capital is % (Round to two decimal places) $250,000 $150,000 $400,000 CHEES
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