Tampa Boat Company pays federal income taxes at a rate of 30 percent on taxable income. Compute

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Tampa Boat Company pays federal income taxes at a rate of 30 percent on taxable income. Compute the company’s annual after-tax cost of borrowing on a 10 percent, $5 million bond issue. Express this after-tax cost as a percentage of the borrowed $5 million.

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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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