Great Seneca Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for
Great Seneca Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing?
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Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
