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Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds are $989 for each $1000 bond. The firm's marginal
Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds are $989 for each $1000 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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To calculate the aftertax cost of debt financing we need to first calculate the beforetax cost of de...
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
