Question
A corporation has outstanding bonds with an 11% coupon rate and a 9% yield to maturity. The corporation assumes that newly issued debt would require
A corporation has outstanding bonds with an 11% coupon rate and a 9% yield to maturity. The corporation assumes that newly issued debt would require a similar yield to maturity. If the marginal tax rate is 40%, what is the firms after-tax cost of debt?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
