Question
The redeemable debentures of an entity are currently selling for 110% of their face value. The debentures mature in 6 years and pay an annual
The redeemable debentures of an entity are currently selling for 110% of their face value. The debentures mature in 6 years and pay an annual coupon of 8%. Calculate the cost of the redeemable debentures if the current tax rate is 28%.
| A. | 3,86%
| |
| B. | 5,97%
| |
| C. | 7,15%
| |
| D. | 7,72% |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
