Question
MAD Corp. has 20-year bonds with an 8% coupon rate and a 10% yield to maturity. What would be MAD's appropriate after-tax cost of debt
MAD Corp. has 20-year bonds with an 8% coupon rate and a 10% yield to maturity. What would be MAD's appropriate after-tax cost of debt if their tax rate is 40%?
| a. | 6.0% | |
| b. | 10.0% | |
| c. | 8.0% | |
| d. | 4.8% |
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Management Foundations A Pacific Rim Focus
Authors: Kathryn Bartol, Margaret Tein, Graham Matthews, Bishnu Sharma, Brenda Scott Ladd
3rd Edition
978-0070284944, 0070284946
