Delevig Energy Co. just issued 20-year, 10% coupon bonds with a flotation cost equal to 4.0% of
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Question:
Delevig Energy Co. just issued 20-year, 10% coupon bonds with a flotation cost equal to 4.0% of the $1,000 face value. The corporate tax rate is 21%. If the bonds are currently sold at $1,025/share, what is the firm's after-tax cost debt?
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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