What is the after-tax cost of debt


Problem:

Your firm has just issued a 20-year $1000 par value, 10% annual coupon bond for a net price of $984. Floatation costs are $15 per bond sold. Tax rate is 30%.

Required:

Question: What is the after-tax cost of debt?

Note: Show all workings.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the after-tax cost of debt
Reference No:- TGS0878111

Expected delivery within 24 Hours