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The company issues a $1,000 par value bond that pays 7% annual interest and matures in 15 years. Investors are willing to pay $958 for
The company issues a $1,000 par value bond that pays 7% annual interest and matures in 15 years. Investors are willing to pay $958 for the bond. Flotation costs will be 11 % of market price. The company is in the 34% marginal tax bracket. Calculate the cost of debt.
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Stocks Bonds And Taxes A Comprehensive Handbook And Investment Guide For Everybody
Authors: Phillip B. Chute
1st Edition
1732885532, 978-1732885530
