Determining of property tax rate

the county legislature approved the budget for 2019. revenues from property taxes are budgeted at $800,000. according to the county assessor, the assessed valuation of all of the property in the county is $50 million. of this amount, property worth $10 million belongs to the federal government or to religious organizations and, therefore, is not subject to property taxes. in addition, certificates for the following exemptions have been filed:

homestead $2,500,000
veterans 1,000,000
old age, blindness, etc. 500,000

in the past, uncollectible property taxes averaged about 3 percent of the levy. this rate is not expected to change in the foreseeable future. using all of this information, determine

a. the property tax rate per $1,000 of assessed valuations that must be used to collect the desired revenues from property taxes.

round answer to two decimal places.

answer

b. the levy on a piece of property that was assessed for $100,000 (after exemptions).

use rounded answer from above. round final answer to the nearest whole number.

Why there has to be two lines in a plane

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

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