Question
A firm's bond with a SAR 1000 par value currently selling at SAR975. The coupon rate is 10% 15 years to the maturity date and
A firm's bond with a SAR 1000 par value currently selling at SAR975. The coupon rate is 10% 15 years to the maturity date and the corporate tax is 21%. What is the cost of debt after tax? (SAR is the Saudi Arabia Reyal)
| 7.25% | ||
| 8.16% | ||
| 8.45% | ||
| 8.75% |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
