Question
Galvatron Metals has a bond outstanding with a coupon rate of 6.8 percent and semiannual payments. The bond currently sells for $1,870 and matures in
Galvatron Metals has a bond outstanding with a coupon rate of 6.8 percent and semiannual payments. The bond currently sells for $1,870 and matures in 20 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?
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
