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Porky Pine Co. is issuing a bond that pays 6% coupon interest annually. Investors are expected to pay $950 for the 10-year bond. Porky will
- Porky Pine Co. is issuing a bond that pays 6% coupon interest annually. Investors are expected to pay $950 for the 10-year bond. Porky will pay 2% of the market price in flotation costs. What is the after-tax cost of debt if the firm is in the 35% corporate tax bracket? Please list the following:
| FV= | |
| Market Price= | |
| Flotation rate= | |
| Flotation costs= | |
| Net proceeds= | |
| PV= | |
| nper= | |
| pmt= | |
| type= | |
| Rate = | |
| corporate tax rate | |
| After-tax cost of debt = |
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Financial Management For Decision Makers
Authors: Peter Atrill
8th Edition
129213433X, 978-1292134338
