If the firms tax rate is 35 what is the component cost of, Financial Management

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If the firms tax rate is 35 what is the component cost of

1. Berkshire Hathaway's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 35%, what is the component cost of debt for use in the WACC calculation?

A. 4.35%

B. 4.58%

C. 5.08%

D. 5.51%

2. The maximum growth rate a firm could achieve if it had no access to external capital is known best as: _________.

A. Spontaneous payout growth rate

B. Self-supporting growth rate

C. Full capacity growth rate

D. Hurley growth rate

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Financial Management: If the firms tax rate is 35 what is the component cost of

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