The following data pertains to Xena Corp. Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity:
The following data pertains to Xena Corp. Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity:
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...
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The following data pertains to Xena Corp.
Xena Corp.
|
Total Assets
|
$23,610
|
Interest-Bearing Debt (market value)
|
$11,070
|
Average borrowing rate for debt
|
10.2%
|
Common Equity:
|
|
Book Value
|
$6,150
|
Market Value
|
$25,830
|
Marginal Income Tax Rate
|
37%
|
Market Beta
|
1.73
|
|
|
Using the information from the table, calculate Xena's cost of debt capital
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