Builtrite Supply is considering selling bonds for a plant expansion. Currently, Builtrite believes that it could...
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Builtrite Supply is considering selling bonds for a plant expansion. Currently, Builtrite believes that it could sell 22-year maturity, $1000 par value, 5 5/8% coupon bonds after flotation costs for $1066. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds? 3.37% 5.10% 3.48% 5.41% Builtrite Supply is considering selling bonds for a plant expansion. Currently, Builtrite believes that it could sell 22-year maturity, $1000 par value, 5 5/8% coupon bonds after flotation costs for $1066. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds? 3.37% 5.10% 3.48% 5.41%
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