Assume that investors hold Alphabet Inc (GOOGL) stock in ret…

Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes. Also assume that GOOGL’s current pre-tax WACC is 12% and its corporate tax rate is 35%. If GOOGL were to issue sufficient debt at a pre-tax cost of 6% to give them a debt to value ratio of 0.4, then the Google’s after-tax WACC would be closest to:

Wyatt Oil issued $200 million in perpetual debt (at par) wit…

Wyatt Oil issued $200 million in perpetual debt (at par) with an annual coupon of 7%. Wyatt will pay interest only on this debt. Wyatt’s marginal tax rate is expected to be 40% for the foreseeable future.  Wyatt’s annual interest tax shield and the present value of interest tax shield are close to _____ respectively: