Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of 0.45. The cost of equity is 17.6 percent.What is the pre-tax cost of the company debt if weighted average costs of the company is 13.5% and the firm's tax rate is 35 percent?

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Q: Coxx, Inc., has a debt-value ratio of 0.75. The firm's weighted average cost of capital is 12…

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Q: Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of…

A: Given debt equity ratio = 0.45 Debt Equity ratio = Debt / Equity = 0.45 It means that If Equity is 1…

Q: Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of…

A: Cost of Equity(Ke) is 17.6% Debt to Equity Ratio is 0.45 WACC is 13.5% Tax rate is 13.5% To Find:…

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A: The following formula will be used:

Q: Nikul

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Q: Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of .45.…

A: DEBT EQUITY RATIO = 0.45PRE TAX COST OF DEBT = 8.90% COST OF EQUITY = 17.60%TAX = 35%

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Q: Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of .45.…

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Q: Bermuda Cruises issues only common stock and coupon bonds.  The firm has a debt-equity ratio of…

A: In the given case, there is given cost of equity , pre tax cost of debt and the tax rate . So, from…