Question
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,100 face value and a 8% coupon, semiannual payment ($44 payment every 6
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,100 face value and a 8% coupon, semiannual payment ($44 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 calculations.
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
