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Business, 17.03.2020 02:15 kmc3490

Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 6 percent coupon rate and make semiannual coupon payments. In order to sell the issue, the bonds must be underpriced at a discount of 1 percent of face value. In addition, the firm would have to pay flotation costs of 1 percent of face value. The firm's tax rate is 21 percent. Given this information, the after-tax cost of debt for Tangshan Mining would be .

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Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a...
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