Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

momr1958 Group Title

Need help with this rate after-tax for debt. Debt is 45%, before-tax debt is 8.7%, and Tax rate is 35%. Please someone help me having a really hard time figuring this out.

  • 2 years ago
  • 2 years ago

  • This Question is Closed
  1. momr1958 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    Can anyone answer this I know the equation is kd(1-T)*wd just cannot figure the kd or the wd with the numbers I have given. Please someone help.

    • 2 years ago
  2. Hero Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Can you explain in a little more detail about this project you're working on?

    • 2 years ago
  3. momr1958 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    I am looking for the WACC for a company. The main problem I am having is with the after-tax part of this problem. Common stock is 40% with a cost of preferred stock of 9.6%, Common stock is 40% with a cost of common equity 17.9%. Does this help you.

    • 2 years ago
  4. momr1958 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    The way the problem is set-up is figure the debt amount of 0.45 * after-tax = something. Then you figure Preferred stock of 0.15*0.096=0.0144, Common stock 0.40*0.179=0.0716 then you add the three together. I just am not sure how to figure the debt after-tax part of the problem. Please explain how to do this if you can.

    • 2 years ago
  5. Hero Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Not really. It's the terminology that I'm having trouble following. If I were you, I'd test out these percentages you're working with by using actual dollar amounts. Besides, in order to really help you, I'd have to have a full idea of how it all works together. I would need some kind of visual model of the money flow.

    • 2 years ago
  6. momr1958 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    Thank you for trying.

    • 2 years ago
  7. Hero Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    By the way, if you want someone to help you, you should make sure you give the helper the best description of the situation as possible. Sometimes words only isn't enough. Pictures, flow-charts, graphs---I'm almost positive your company uses such things in business meetings when they're explaining their money flow.

    • 2 years ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.