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    Marietta Corporation

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    This is an undergraduate finance question. I have attached an Excel sheet with the complete problem from the book, my question is only about question 1, finding the after tax cost of only project A.

    Marietta Corporation

    © BrainMass Inc. brainmass.com October 9, 2019, 8:22 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/marietta-corporation-after-tax-cost-148523

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    Marietta Corporation

    For Cost of Debt, as its internal rate of return is the highest, we will assume that the company
    uses the first part of the first-mortgage bonds issued at 9% selling at par for $50 million.

    kd(1 - T)
    0.09(1 - 0.40) = ...

    Solution Summary

    This solution is comprised of a detailed explanation to find the after tax cost of only project A.

    $2.19