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KatyDid Clothes has a $180 million (face value) 20-year bond issue selling for 105 percent of par that carries a coupon rate of 7 percent,
| KatyDid Clothes has a $180 million (face value) 20-year bond issue selling for 105 percent of par that carries a coupon rate of 7 percent, paid semiannually. |
| What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.) |
| Cost of debt | % |
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
