Question
KatyDid Clothes has a $130 million (face value) 30-year bond issue selling for 106 percent of par that carries a coupon rate of 10 percent,
| KatyDid Clothes has a $130 million (face value) 30-year bond issue selling for 106 percent of par that carries a coupon rate of 10 percent, paid semiannually. |
| What would be Katydids before-tax component cost of debt? (Round your answer to 2 decimal places.) |
| Cost of debt | % |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
