Question
Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $984.00. Floatation costs are $15 per
Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $984.00. Floatation costs are $15 per bond sold. Tax rate is 30%. What is the after-tax cost of debt?
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Contemporary Issues In Development Finance
Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi
1st Edition
1138324329, 978-1138324329
