Currently, Warren Industries can sell 15 year, $1000 par value bonds paying annual interest at a 7%
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Currently, Warren Industries can sell 15 year, $1000 par value bonds paying annual interest at a 7% coupon rate. Because current market rates for similar bonds are just under 7%, warren can sell its bonds for $1010 each, warren will incur flotation costs of $30 per bond in this process. The firm is in the 40% tax bracket.
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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