What is the after-tax cost of capital for this debt


Great Seneca Inc. sells $100 million worth of 29-year to maturity 10.59% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing?

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Financial Management: What is the after-tax cost of capital for this debt
Reference No:- TGS02252008

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