Question
A firm's original 15-year 8.5% coupon bonds (paid semiannually) currently have 12 years until they mature and are selling at $1,180. If these bonds
A firm's original 15-year 8.5% coupon bonds (paid semiannually) currently have 12 years until they mature and are selling at $1,180. If these bonds are the only debt outstanding, what is the after-tax cost of debt if the marginal tax rate is 31% ? Enter answers as percentage with two decimal points (e.g., 6.11%).
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
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