Question
A firm is issuing new bonds that pay 8 percent annual interest. The market required annual rate of return on these bonds is 13 percent.
A firm is issuing new bonds that pay 8 percent annual interest. The market required annual rate of return on these bonds is 13 percent. The firm has an interest subsidy rate of 25%
what is the before tax cost of debt?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
