zoo mart has an outstanding bond that has 7 years to maturity. it pays a coupon of 45$ every 6 months and the face value is 1,000. if zoomart wanted to issue debt, it would have flotation costs of 5% zoomart has an effective tax rate of 34% if the current market price for the bond is 1,350$ what is zoomarts after tax cost of debt?

Answer rating: 100% (QA)

To calculate Zoo Marts aftertax cost of debt we need to consider the flotation costs and ... View the full answer