A company is issuing a 3 year bond with a face value of 25 million and a

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A company is issuing a 3 year bond with a face value of 25 million and a coupon of $10 \%$. The company is paying taxes with $28 \%$. The company's cost of capital is $15 \%$. What is the value of the bond issue for the company?

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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Question Posted: May 21, 2024 03:03 AM

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A company is issuing a 3 year bond with a face value of 25 million and a

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Lectures On Corporate Finance

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