Question
Shanken Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently
| Shanken Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 94 percent of its face value. The companys tax rate is 35 percent. |
| a. | What is the pretax cost of debt?
|
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Handbook Of Business Valuation
Authors: Thomas L. West, Jeffrey D. Jones
2nd Edition
0471297879, 978-0471297871
