Question
Galvatron Metals has a bond outstanding with a coupon rate of 6.6 percent and semiannual payments. The bond currently sells for $1,898 and matures in
Galvatron Metals has a bond outstanding with a coupon rate of 6.6 percent and semiannual payments. The bond currently sells for $1,898 and matures in 16 years. The par value is $2,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt?
Multiple Choice 4.61% 4.02% 5.64% 3.33% 3.57%
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Valuing Financial Institutions
Authors: Z. Christopher Mercer
1st Edition
1556233795, 978-1556233791
