Business, 04.04.2020 13:08 fatimaramosc11ouv4s2

Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon interest rate is 9%. The bonds sold for par value, but flotation costs amounted to 5% of the price. You have a 21% corporate tax rate. What is your firm’s after-tax cost of debt? Group of answer choices

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Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon in...

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