Determine the (after-tax) percentage cost of a $50 million debt issue that Sams is planning to place

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Determine the (after-tax) percentage cost of a $50 million debt issue that Sams is planning to place privately with a large insurance company. Assume that the company has a 40% marginal tax rate. This long-term debt issue will yield 20% to the insurance company

4.8%

7.2%

12.0%

10.6%

Posted Date: Jun 25, 2024 06:39 PM

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Determine the (after-tax) percentage cost of a $50 million debt issue that Sams is planning to place

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