Determine relevant after-tax component cost of debt
Question:
Franklin Mining has 15 yr, 8% annual coupon bond outstanding. Bond has a current market price of $885.54 and a face value of $1,000. If Franklin's marginal tax rate is 35% what is its relevant after-tax component cost of debt, rd (1-T)?
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If Franklin's marginal tax rate is 35% what is its relevant after-tax component cost of debt, rd (1-T)?
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