What is the correct formula in B8 to calculate the after-tax cost of debt?





a) =RATE(B1*B5,B2/B5*B4,-B3*(1-B6),B4)

b) =RATE(B1*B5,B2/B5*B4,-B3*(1-B6),B4)*B5*(1-B7)

c) =RATE(B1*B5,B2/B5*B4,-B3,B4)*B5*(1-B7)

d) =RATE(B1*B5,B2/B5*B4,-B3*(1-B6),B4)*(1-B7)


b) =RATE(B1*B5,B2/B5*B4,-B3*(1-B6),B4)*B5*(1-B7)

Business

You might also like to view...

?In computing descriptive statistics for grouped data, the data values in each class are approximated using the

A. ?class lower limits. B. ?class upper limits. C. ?class midpoint. D. ?class range.

Business

Which of the following statements is CORRECT?

A. On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss. B. On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest. C. If a coupon bond is selling at par, its current yield equals its yield to maturity. D. The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond A must have a higher yield to maturity than Bond B. E. If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.

Business

Some of the negative effects of passion can be:

a. failure to heed warning signs b. failure to hear negative feedback c. failure to see other opportunities d. all of these

Business

A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:

A. Management budgeting. B. Activity-based budgeting. C. Traditional budgeting. D. Cash budgeting. E. Master budgeting.

Business