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Title: Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year ... Post by: betterway on Mar 7, 2017 Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year maturity and a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. In addition, the firm would have to pay flotation costs of 5 percent of face value. The firm's tax rate is 35 percent. Given this information, the after-tax cost of debt for Nico Trading would be ________.
A) 7.26% B) 11.17% C) 10.00% D) 9.00% Title: Re: Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year ... Post by: donnaban on Mar 7, 2017 Content hidden
Title: Re: Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year ... Post by: betterway on Jul 4, 2017 Thank you !
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