L A Moving to another question will save this response. Question 9 A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 percent. What is the O $6,200.00 O $10,810,200.00 O $7,645.00 O $7,245.00 O $98,800.00

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 9
1 po
A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 percent. What is the value of the depreciation tax shield?
O $6,200.00
O $10,810,200.00
O $7,645.00
O $7,245.00
O $98,800.00
A Moving to another question will save this response.
Transcribed Image Text:1 r 9 12 13 14 50 17 A Moving to another question will save this response. Question 9 1 po A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 percent. What is the value of the depreciation tax shield? O $6,200.00 O $10,810,200.00 O $7,645.00 O $7,245.00 O $98,800.00 A Moving to another question will save this response.
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Glenmark has a debt equity ratio of 0.40 and its WACC is 10.329% with a tax rate of 30%, Calculate its after tax cost of debt if the cost of equity is 12.5%. ( Show your answers in percentage and do
include the percentage symbol.)
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Transcribed Image Text:1 21 30 Ar 5 51 74 n 9 12 13 14 17 A Moving to another question will save this response. Question 1 of 17>> uestion 1 4 points Save Answer Glenmark has a debt equity ratio of 0.40 and its WACC is 10.329% with a tax rate of 30%, Calculate its after tax cost of debt if the cost of equity is 12.5%. ( Show your answers in percentage and do include the percentage symbol.) Question 1 of 17E A Moving to another question will save this response. hp fa IDI 96 4 $ 5 8
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