Determine the after-tax cost of debt capital


A corporate bond has the face value of $1,000 and coupon rate of 9%. The bond matures in 14 years and has current market price of $946. If the corporation sells more bonds it will incur flotation costs of $26 per bond. If the corporate tax rate is 35%, Determine the after-tax cost of debt capital?

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Determine the after-tax cost of debt capital
Reference No:- TGS0874264

Expected delivery within 24 Hours