Question
M&M Manufacturing issued P1,000, 30-year bonds 4 years ago at a coupon rate of 12% compounded semiannually. The bonds are currently selling for P1,150 each.
M&M Manufacturing issued P1,000, 30-year bonds 4 years ago at a coupon rate of 12% compounded semiannually. The bonds are currently selling for P1,150 each. M&M's marginal tax rate is 30%. Calculate cost of debt after tax. (Use AYTM)
Group of answer choices
5.35%
3.74%
7.49%
10.70%
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
