Reuvens flotation expense on the new bonds will be 50 per


Reuven Corp. is undergoing a major expansion. The expansion will be financed by issuing new 16-year, $1,000 par, 9% semiannual coupon bonds. The market price of the bonds is $1,090 each. Reuven's flotation expense on the new bonds will be $50 per bond. What is the pre-tax cost of debt for the newly-issued bonds

Solution Preview :

Prepared by a verified Expert
Finance Basics: Reuvens flotation expense on the new bonds will be 50 per
Reference No:- TGS02777915

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)