Question
Rover's Dog Care has outstanding debt currently selling for $880 per bond. It matures in 20 years, pays interest semiannually, and has a coupon rate
Rover's Dog Care has outstanding debt currently selling for
$880
per bond. It matures in
20
years, pays interest semiannually, and has a coupon rate of
12%.
If par is
$1,000
and the tax rate is
45%,
what is the after-tax cost of debt?
The after-tax cost of debt for Rover's Dog Care is:
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
