Question
BG Company has outstanding a series of $1,000 par value, 9% coupon bonds that mature in 10 years. The bonds currently sell for $895. BGs
BG Company has outstanding a series of $1,000 par value, 9% coupon bonds that mature in 10 years. The bonds currently sell for $895. BGs current tax rate is 45%. What is BGs after-tax (component) cost of debt?
Group of answer choices
4.63%
5.27%
5.97%
8.42%
9.59%
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
