Builtrite Furniture is considering sells bonds for a plant expansion.

Currently, Builtrite believes that it could sell 10-year maturity,

$1000 par value,

6 1/8% coupon

bonds after flotation costs for $1030.

If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds?

O 5.71%

O 3.77%

O 5.60%

O 3.68%

Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 10-year maturity, $1000 par value, 61/8% coupon bonds after flotation costs for $1030. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds? 5718 377x 560h 3.68%