Micro spinoffs inc issued 20-year debt a year ago at par


Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 7%, paid annually. Today, the debt is selling at $1,160. If the firm’s tax bracket is 20%, what is its after-tax cost of debt? (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax cost of debt %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Micro spinoffs inc issued 20-year debt a year ago at par
Reference No:- TGS01250555

Expected delivery within 24 Hours