Question
Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 7%, paid annually. Today, the debt is selling
Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 7%, paid annually. Today, the debt is selling at $1,160. If the firms tax bracket is 20%, what is its after-tax cost of debt? (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax cost of debt %
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Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
