Great seneca inc sells 100 million worth of 27-year to


Question: Great Seneca Inc. sells $100 million worth of 27-year to maturity 14.39% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $981 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Great seneca inc sells 100 million worth of 27-year to
Reference No:- TGS02772254

Expected delivery within 24 Hours