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Rickos Rickos
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7 years ago
Liverpool International Corporation's marginal tax rate is 35%. It can issue three-year bonds with a coupon rate of 4.5%. The bonds can be sold now at their par value of $1,000. Determine the appropriate after-tax cost of debt for Dublin International to use in a capital budgeting analysis.
A) 6.92%%
B) 4.50%
C) 2.93%
D) 1.58%
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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7 years ago
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