Question
Use the information below to determine before tax cost of debt financing of bond S. selling price of bond $1,000 # of year to maturity
Use the information below to determine before tax cost of debt financing of bond S.
selling price of bond $1,000
# of year to maturity 17
annual coupon rate 13.99%
par value $1,000
flotation costs $2.23
before tax cost of debt financing (%) ?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
