Micro spinoffs inc issued 10-year debt a year ago at par


Micro Spinoffs, Inc., issued 10-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,210. If the firm's tax bracket is 20%, what is its after-tax cost of debt?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Micro spinoffs inc issued 10-year debt a year ago at par
Reference No:- TGS0612966

Expected delivery within 24 Hours