Question
9. Lee Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $50 every six months. The bonds have a
9. Lee Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $50 every six months. The bonds have a market price of $920. Flotation costs on new debt will be 6%. If the firm is in the 35% marginal tax bracket, what is the posttax cost of new debt?
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Capitalism Without Capital The Rise Of The Intangible Economy
Authors: Jonathan Haskel, Stian Westlake
1st Edition
0691183295, 978-0691183299
