Question: Firm A plans to issue a $ 1 , 0 0 0 par value, 2 0 - year noncallable bond with a 7 . 0
Firm A plans to issue a $ par value, year noncallable bond with a annual coupon, paid semiannually. The firm is considering a change in the corporate tax rate to By how much would the aftertax cost of debt ie rd times T using the new tax rate decrease?
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