Chapter 9 – Lab questions
Mahdi Toobaee
,Problem 9-2
𝑟! = 𝑌𝑇𝑀 = 8.4%, 𝑇 = 25%
𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑑𝑒𝑏𝑡 = 𝑟! 1 − 𝑇 = 0.084 1 − .25 = 0.063 = 6.3%
, Problem 9-3
𝑃" = $25, 𝐷 = $1.75, 𝐹=0
𝐷
𝑟#$ =
𝑃" 1 − 𝐹
$1.75
𝑟#$ = = 0.07 = 7%
$25 1 − 0
Mahdi Toobaee
,Problem 9-2
𝑟! = 𝑌𝑇𝑀 = 8.4%, 𝑇 = 25%
𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑑𝑒𝑏𝑡 = 𝑟! 1 − 𝑇 = 0.084 1 − .25 = 0.063 = 6.3%
, Problem 9-3
𝑃" = $25, 𝐷 = $1.75, 𝐹=0
𝐷
𝑟#$ =
𝑃" 1 − 𝐹
$1.75
𝑟#$ = = 0.07 = 7%
$25 1 − 0