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What is the After-tax Cost of Debt for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket. The firm can issue $1000
What is the After-tax Cost of Debt for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket. The firm can issue $1000 par value, 9% semi-annual coupon interest bond with a 15 year maturity date. The selling price is $980. Flotation cost of $25. (NB: Use the intrinsic (internal) values (rates, cost) of each component in the capital structure.) Question 3Answer a. 9.51% b. 5.14% c. 5.71%% d. 8.44%
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