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The firm can sell a 5-year, $1000 par value bond, an 8% coupon interest rate paid semi-annually for $1,050. a flotation cost of 2% of
The firm can sell a 5-year, $1000 par value bond, an 8% coupon interest rate paid semi-annually for $1,050. a flotation cost of 2% of par value would be required in addition to the premium of $50. the tax rate is 30% calculate the following
cost of debt after tax
Answer 1
Cost of debt before tax
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
