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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
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
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