ABC Comapny has an outstanding bond callable at $1,340. The total value of the bond is...
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ABC Comapny has an outstanding bond callable at $1,340. The total value of the bond is $100 million. The company determines issuing a new bond and use the proceeds to buy back the above bond, with transaction cost is $1,310,000. Suppose the tax rate is 30%. Based on the information given above, the total after-tax cost of refunding is? ABC Comapny has an outstanding bond callable at $1,340. The total value of the bond is $100 million. The company determines issuing a new bond and use the proceeds to buy back the above bond, with transaction cost is $1,310,000. Suppose the tax rate is 30%. Based on the information given above, the total after-tax cost of refunding is?
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To calculate the total aftertax cost of refunding for ABC Company we need to consider the transactio... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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