Calculate the after - tax cost of a $ 2 5 million debt issue that Pullman Manufacturing

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Question:

Calculate the after

-

tax cost of a $

25

million debt issue that Pullman Manufacturing Corporation

(35 %

marginal tax rate

)

is planning to place privately with a large insurance company. This long

-

term issue will yield

percent to the insurance company. Round your answer to two decimal places.

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

See More Books

Posted Date: May 19, 2024 01:14 AM

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Calculate the after - tax cost of a $ 2 5 million debt issue that Pullman Manufacturing

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Expert Answer:

Contemporary Financial Management

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