Ventra Corp. buys preferred stock with a before- tax yield of 7.2%. The corporate tax rate is 30%, and 70% of dividends are excluded from tax. What is the after-tax yield?
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- A firm is paying an annual dividend of $2.65 for its preferred stock that is selling for $57.00. There is a selling cost of $3.30. What is the after-tax cost of preferred stock if the firm's tax rate is 21%?Please need answer the financial accounting questionIf the after tax income is different, why ??? General accounting
- Terrier Company is in a 45 percent tax bracket and has a bond outstanding that yields 11 percent to maturity. a. What is Terrier's after-tax cost of debt? b. Assume that the yield on the bond goes down by 1 percentage point, and due to tax reform, the corporate tax falls to 30 percent. What is Terrier's new aftertax cost of debt? c. Has the after-tax cost of debt gone up or down from part a to part b? Explain why.A company currently has a WACC of 10.6 percent and no debt. The tax rate is 21 percent. a. What is the company’s current cost of equity? b. If the firm converts to 40 percent debt with a cost of 6%, what will its cost of equity be? And the WACC? c. If the firm converts to 60 percent debt with a cost of 6% , what will its cost of equity be? And the WACC? d. What can you conclude from the values of the cost of equity and WACC obtained in b. and c. Please show excel formulas___ is the after tax return?
- What are its after tax earnings? AccountingWhat are its after tax earnings? General accountingPfd Company has debt with a yield to maturity of 5.6%, a cost of equity of 12.8%, and a cost of preferred stock of 9.2%. The market values of its debt, preferred stock, and equity are $11.8 million, $2.5 million, and $13.9 million, respectively, and its tax rate is 21%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is %. (Round to two decimal places.)
- Starset, Incorporated, has a target debt-equity ratio of 0.76. Its WACC is 10.5 percent, and the tax rate is 32 percent. If the company's cost of equity is 14.5 percent, what is the pretax cost of debt? If instead you know that the aftertax cost of debt is 6.7 percent, what is the cost of equity?Pfd Company has debt with a yield to maturity of 5.5 %, a cost of equity of 12.7 %, and a cost of preferred stock of 10.3 %. The market values of its debt, preferred stock, and equity are $ 10.3 million, $3.4 million, and $ 16.9 million, respectively, and its tax rate is 21%. What is this firm's after - tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.Suppose Essen Corp has the following weights and costs. What is the WACC if the company has a 21% tax rate? Component Common equity Debt (before tax) R 11.5% 0.8 0.2 7.5% 10.39% ()8.71% ()6.25% 9.50% 10.70% Page 29 of 30 Previous Page Next Page