Mathematics, 15.06.2020 03:57 biglue19
a $1000 par value bond with a market price of $965 and a coupon interest rate of 9 percent. Flotation costs for a new issue would be approximately 7 percent. The bonds mature in 12 years and the corporate tax rate is 21 percent. What is the firm’s after tax-cost of debt on the bond.
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a $1000 par value bond with a market price of $965 and a coupon interest rate of 9 percent. Flotatio...
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