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Business, 05.08.2021 22:20 mikia950

Nine Point Industries is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 14 percent and will be sold at a market price of $1050 with no flotation costs. The bonds will mature in 15 years and interest payments will be made semi-annually. The company's marginal tax rate is 21%. What is the firm's after-tax cost of debt financing

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Nine Point Industries is planning to issue $1,000 par value bonds. The bonds will have a coupon rate...
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