Issuance of bond with 12 percent coupon. The floatation cost is 5 percent of the RM1,245 market

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Issuance of bond with 12 percent coupon. The floatation cost is 5 percent of the RM1,245 market value. The maturity period is 10 years and the tax rate of the company is 35 percent. Compute the cost of financing for bond.

Related Book For answer-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: May 25, 2023 08:53 AM

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Issuance of bond with 12 percent coupon. The floatation cost is 5 percent of the RM1,245 market

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To compute the cost of financing for the bond we need to consider the coupon rate flotation cost mat... View the full answer

Foundations of Finance The Logic and Practice of Financial Management

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