Top Posters
Since Sunday
j
3
s
3
j
2
J
2
e
2
n
2
t
2
d
2
b
2
t
2
J
2
b
2
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
samualson samualson
wrote...
Go to Answer
Posts: 2459
Rep: 13 0
6 years ago
XRT, Inc. is issuing a $1,000 par value bond that pays 8.5% interest annually. Investors are expected to pay $1,100 for the 12-year bond. The firm will pay $50 per bond in flotation costs. What is the after-tax cost of new debt if the firm is in the 35% tax bracket?
A) 8.23%
B) 4.55%
C) 4.70%
D) 7.45%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 40 times
2 Replies
Replies
Answer verified by a subject expert
Marc18Marc18
wrote...
#1
Top Poster
Posts: 1080
Rep: 114 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

samualson Author
wrote...
#2
6 years ago
Such an awesome helper!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  677 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 158
  
 368
  
 501
Your Opinion
Who will win the 2024 president election?
Votes: 119
Closes: November 4
Previous poll results: How often do you eat-out per week?