# finance

If our company's bank loan has a 12 interest rate, what is our effective, after-tax interest cost? Assume the tax rate = 38%
If our preferred stock is paying a contractual \$1.85 annual dividend and has current market price of \$13.50, what is our cost of preferred stock?
A company pays a common stock dividend of \$1.96. The stock's current price is 447.50 per share. Compute the cost of common equity.
The return on long-term US government securities (30 year Treasuries) = 5.25%. The projected 15-year average return of S&P 500 stocks is 6.05%. The stock we wish to invest in has a "beta" of 1.065. What does the CAPM formula say our cost of equity is? How risky is this stock as an investment?

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### math

Case: A borrower received a 30-year ARM mortgage loan for \$200,000. Rate caps are 3/2/6. The start rate is 3.50% and the loan adjusts every 12 months for the life of the mortgage. The index used for this mortgage is LIBOR (for

2. ### math

Janet Home went to Citizen Bank. She borrowed \$7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back

Assume a bank loan requires a interest payment of \$85 per year and a principal payment of \$1,000 at the end of the loan's eight-year life. a) How much could this loan be sold for to another bank if loans of similar quality carried

On May 19, Bette Santoro borrowed \$3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what's the total interest cost to Bette? A. \$265.89 B. \$175.89 C.

1. ### Finance

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5 year, \$6,000,000 bank loan to finance service equipment. The loan has an interest rate of 10% and would be amortized over 5 years,

2. ### Mathematics

A payday loan company charges a \$30 fee for a \$550 payday loan that will be repaid in 15 days. Treating the fee as interest paid, what is the equivalent annual interest rate? % interest Round to the nearest percent. This will be

3. ### Mortgage Class

A borrower received a 30-year ARM mortgage loan for \$120,000. The start rate was 3.50% and the loan adjusts every 12 months for the life of the mortgage. Rate caps are 3/2/6. The index used for this mortgage is the LIBOR. For this

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as \$10,000 and the interest rate is 10 percent, the borrower “pays” 0.10 x \$10,000 = \$1,000 immediately, thereby

1. ### math

A loan company charges \$20 interest for a two-month loan of \$325. Find the annual interest rate (APR) they are charging. Round your answer to the nearest tenth of a percent.

2. ### Math

Loan Amount: \$13,000 Method of payment: discount basis Amount of Interest: \$625 Term of loan: 1 year Effective Rate of Interest (to the nearest tenth): _____ %