A company is considering issuing bonds to finance a new project. The bonds will have a face
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A company is considering issuing bonds to finance a new project. The bonds will have a face value of $1,000 and a coupon rate of 6% per year. The bonds will mature in 10 years, and the company plans to issue 1,000 bonds. If the company's tax rate is 25%, what is the after-tax cost of debt for the company?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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