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samualson samualson
wrote...
Posts: 2459
6 years ago
A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $925. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?
A) 3.74%
B) 4.45%
C) 5.29%
D) 6.78%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 92 times
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wrote...
6 years ago
 A
 
samualson Author
wrote...
6 years ago
Thank you for your assistance, again and again
wrote...
6 years ago
My pleasure
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