Mark winford inc issued a 1000 face value bond with a 10


Mark Winford, Inc., issued a $1,000 face value bond with a 10 percent coupon rate. Interest is paid annually. After flotation costs, the company received $928 (which means flotation costs were about 72 dollars per bond) per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent. The bonds mature in 11 years.

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Financial Management: Mark winford inc issued a 1000 face value bond with a 10
Reference No:- TGS01215344

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