Question
Damara Corporations currently outstanding bonds have a 8% coupon and a YTM of 10% to maturity. Damara believes it could issue at par new bonds
Damara Corporations currently outstanding bonds have a 8% coupon and a YTM of 10% to maturity. Damara believes it could issue at par new bonds that would provide a similar YTM. If its marginal tax rate is 30%, what is Damaras after-tax cost of debt?
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The Handbook Of Financial Modeling
Authors: Jack Avon
1st Edition
1430262052, 978-1430262053
