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Please help me (Cost of debi) Carraway Seed Company is issuing a $1,000 par value bond that pays 11 percent annual interest and matures in
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(Cost of debi) Carraway Seed Company is issuing a $1,000 par value bond that pays 11 percent annual interest and matures in 8 years. investions are wiling to pay $970 tor the bond Flotatich coss will be 9 percent of market value. The company is in a 38 percent tax bracket. What will be the firm's ahertax cost of debt on the bond? The firm's after-tax cost of debt on the bond will be 4. (Reund to two decimal places.) Step by Step Solution
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