Triplin Corporation's marginal tax rate is 35%. It can issue 12-year bonds with a coupon rate of 9% paid annually and a par value of $1,000. After $40 per bond flotation costs, new bonds will net the company $950 in

proceeds. Determine the appropriate after-tax cost of new debt for Triplin to use in a capital budgeting analysis.

0 4.81%

0 5.60%

0 6.32%

0 7.73%

el El Question 14 of 20 > 8

A

Moving to another question will save this response.

MacBook