The company is in a 35 percent tax bracket what will be the


Carraway Seed Company is issuing a $1,000 par value bond that pays 9 percent annual interest and matures in 11 years. Investors are willing to pay $930 for the bond. Flotation costs will be 14 percent of market value. The company is in a 35 percent tax bracket. What will be the firm's after-tax cost of debt on the bond?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The company is in a 35 percent tax bracket what will be the
Reference No:- TGS02822514

Expected delivery within 24 Hours