Cost of debt Suppose Bobs Golf Cart Shop has 4,000 30-year bonds outstanding, each currently selling at
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Cost of debt Suppose Bob’s Golf Cart Shop has 4,000 30-year bonds outstanding, each currently selling at $897.64. The bonds have 18 years left until maturity and have a coupon rate of 7.5 %. What is Bob’s before-tax cost of debt if the bond pays semiannual coupons? If the tax rate is 35 %, what is the after-tax cost?
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Related Book For 
Applied Corporate Finance Questions Problems And Making Decisions In The Real World
ISBN: 9781493952991
1st Edition
Authors: Mark K. Pyles
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