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Issuance of bond with 12 percent coupon. The floatation cost is 5 percent of the RM1,245 market value. The maturity period is 10 years and
Issuance of bond with 12 percent coupon. The floatation cost is 5 percent of the RM1,245 market value. The maturity period is 10 years and the tax rate of the company is 35 percent. Compute the cost of financing for bond.
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To compute the cost of financing for the bond we need to consider the coupon rate flotation cost mat...
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
