Question
The flotation costs of issuing bonds for a new 4-year project are $50K. These costs will be amortized over the life of the project. The
The flotation costs of issuing bonds for a new 4-year project are $50K. These costs will be amortized over the life of the project. The corporate tax rate is 20%. The interest rate on the bonds is 10%. Find the NPV of flotation costs.
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Principles Of Corporate Finance Law
Authors: Eilis Ferran, Look Chan Ho
2nd Edition
0199671354, 978-0199671359
