Company X pays interest to the amount of R1 500 a year on total liabilities of R10 000. It can also issue bonds with a YTM of 12%. What will the relevant before tax cost of debt be when calculating that WACC for the company? a. 18% b. 12% c. 15% d. 8%

D3)  Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The corporate tax that company Z is paying ia of 50%.Calculate the Tax shield.

Using the following variables, calculate an organization's cost of debt on a $500,000 bond. • R₁: 1% • credit-risk rate: 5% • t: 15% $30,000 $25,500 $29,550 $4,500

Outstanding debt of Home Depot trades with a yield to maturity of 6​%.The tax rate of Home Depot is 30%.What is the effective cost of debt of Home​ Depot?   A. 5.25​%   B. 4.2​%   C. 5.04​%   D. 4.62​%

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!

a. Determine the annual before-tax interest cost for each company in dollars. b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.) c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds. (Round your answers to 1 decimal place.)

Calculate the aftertax cost of debt under each of the following conditions. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a b с Yield 8.5% 14.5% 12.0% Corporate tax rate 23% 37% 43% Cost of debt % % %

Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is the amount of proceeds the company will receive at the time of the loan and what is the effective interest rate  choose the letter of the correct answera. P13,300.00 and 19%b. P26,700.00 and 19%c. P13,300 and 23.5%d. P23,300.00 and 19%e. P56,700.00 and 23.5%

​ Temple-Midland, Inc. is issuing a ​$1,000 par value bond that pays 7.5 percent annual interest and matures in 15 years. Investors are willing to pay ​$949 for the bond and Temple faces a tax rate of 32 percent. What is​ Temple's after-tax cost of debt on the​ bond?       Question content area bottom Part 1 The​ after-tax cost of debt is_____%

Company issuing three year debt, and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt: PV of interest tax shield ($MM) $ Probability of Financial Distress . $0 0% $ $25 0.4 $ 0% AMOUNT OF DEBT (SMM) $60 1.1 $ $70 1.2 $ 3% 5% $50 0.9 $ 1% $80 1.4 $ 8% $90 1.6 $ 20% $100 1.8 33% If in the event of distress, the present value of distress costs is equal to $15 million, then the optimal level of debt for company: A. $25 million B. $50 million C. $60 million D. $70 million