Cost of debt ) Sincere Stationery Corporation needs to raise $ 5 0 0 , 0 0

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Question:

Cost of debt

)

Sincere Stationery Corporation needs to raise $

500, 000

to improve manufacturing plant. It has decided to issue a $

1, 000

par value bond with a

14

percent annual coupon rate and a

10 -

year maturity. The investors require a

9 %

rate of return. Assume Flotation costs are

10.5 %

of market priceAssume tax rate is

34 %

What is the After

-

Tax Cost of Debt?

Posted Date: May 18, 2024 08:02 PM

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Cost of debt ) Sincere Stationery Corporation needs to raise $ 5 0 0 , 0 0

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