Chapter 14 Flashcards by Conner Hansen

Q

Cost of Debt (Bonds)

A

YTM

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Q

Cost of Equity

A

R

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Q

YTM after tax

A

YTM(1-tax rate)

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Q

WACC

A

1) after tax cost of debt
2) cost of equity (common/preferred)
3) market values
4) weights
5) sum of (4s x 1 & 2)

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