carraway

Cost of debt) issuing a $1,000 par value bond that pays 11 percent annual interest and matures in 12 years. I are willing $960 for the bond. Flotation costs will be 14 percent of market value. The company is in a 35 percent tax bracket. What will be the firm's after-tax cost of debt bond? The firm's after-tax cost of debt on the bond will be % (Round to two decimal places.) roblem 9-4 (similar to) (Cost of debl) Carraway Seed Company is issuing a $1,000 par value bond that pays 11 percent annual interest and matures in 12 years Investors are willig o pay $960 for the bond. Flotation costs will be 14 percent of market value. The company is in a 35 p bond? on the The firm's after-tax cost of debt on the bond will be 1% Round to two decimal places.)