Question
A bond has a $1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation
A bond has a $1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation cost of 5% of the market value. The bonds mature in 10 years. The firm's average tax rate is 28% and its marginal tax rate is 39%. The current price is $1,100.
What is the after-tax cost of debt?
Do not copy from Chegg and give complete answer with explanation
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Dave Ramseys Complete Guide To Money
Authors: Dave Ramsey
1st Edition
1937077209, 978-1937077204
