Question
Micro Spinoffs Inc. issued 20 year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the ebt is
Micro Spinoffs Inc. issued 20 year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the ebt is selling at $1,050. If the firm's tax bracket is 35%, what is its percentage after-tax cost of debt?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
2nd Edition
0324289235, 9780324289237
