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    johnsmith22 Posts: 4, Reputation: 1
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    Apr 9, 2012, 03:21 PM
    After tax cost of capital
    A company facing a tax rate of 40% has an equity beta of 1.35. The riskless rate is 5% and the expected return on the market is 12%. What is the after tax cost of this capital? Express your answer without a percent sign (12.345% = 12.345).
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    johnsmith22 Posts: 4, Reputation: 1
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    #2

    Apr 9, 2012, 03:22 PM
    After tax cost of capital
    A company facing a tax rate of 25% has issued a zero-coupon bond with a 55000 face value, and a maturity of 6 years. The bond is priced at 40000. What is the after tax cost of this capital? Express your answer without a percent sign (12.345% = 12.345).
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    johnsmith22 Posts: 4, Reputation: 1
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    #3

    Apr 9, 2012, 03:23 PM
    After tax cost of capital
    A company facing a tax rate of 45% has an equity beta of 1.80. The riskless rate is 3% and the expected return on the market is 14%. What is the after tax cost of this capital? Express your answer without a percent sign (12.345% = 12.345).


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    johnsmith22 Posts: 4, Reputation: 1
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    #4

    Apr 9, 2012, 03:27 PM
    I'm not really looking for the answer, just how to solve a problem similar to this.
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