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Title: XYZ Inc. is planning a $200,000 90-day commercial paper issue. The issue is sold for $193,500. There ... Post by: vikingblood on Aug 20, 2023 XYZ Inc. is planning a $200,000 90-day commercial paper issue. The issue is sold for $193,500. There is a flotation cost of $1,500. The corporate tax rate is 35%. (Assume a 365-day year.) Which of the following statements is correct? ▸ The before-tax cost is 16.77%. ▸ The before-tax cost is 15.71%. ▸ The after-tax cost is 10.21%. ▸ The after-tax cost is 10.06%. Title: Re: XYZ Inc. is planning a $200,000 90-day commercial paper issue. The issue is sold for $193,500. There ... Post by: rector on Aug 20, 2023 Content hidden
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