ABC Corporation is considering issuing new debt to finance a new project. The company can issue 10-year
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ABC Corporation is considering issuing new debt to finance a new project. The company can issue 10-year bonds with a face value of $1,000 and a coupon rate of 6%. The bonds will be sold at a discount of 2% and the company's tax rate is 30%. What is the after-tax cost of debt for ABC Corporation?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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