Determining the cost of debt of company, Finance Basics

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Determining the cost of debt of company

Battan Inc. is considering issuing a bond with a face value of $ 1,000, which will pay an interest rate of 8%. The company expects that investors paid $ 910 for the 20-year bond. The flotation cost of the bond is $ 42. What is the cost of debt of the company?. Assume a 34% tax rate. is 9.5% or 6.3%

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Finance Basics: Determining the cost of debt of company

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Battan Inc. is considering issuing a bond with a face value of $ 1,000, which will pay an interest rate of 8%. The company expects that investors paid $ 910 for the 20-year bond.

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Finance Basics: Determining the cost of debt of company

Reference No:- TGS038814

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Recent Questions Asked Finance Basics

Q : Find implication of two-way causality-estimated coefficients

Q : Explain estimation techniques linear-log-linear-non-linear

Q : Amount of income-tax return from transactions

Q : Potential deductions resulting from bonus deprecation

Q : Determining the cost of debt of company

Q : Explain which is higher in equilibrium

Q : Casualty loss amount-deduct on return

Q : Determining amount of mortgage payment

Q : Explain classical errors-in-variables assumptions

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining the cost of debt of company

Reference No:- TGS038814

Recent Questions Asked Finance Basics

Q : Find implication of two-way causality-estimated coefficients

Q : Explain estimation techniques linear-log-linear-non-linear

Q : Amount of income-tax return from transactions

Q : Potential deductions resulting from bonus deprecation

Q : Determining the cost of debt of company

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Q : Determining amount of mortgage payment

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