Business, 13.08.2021 02:40 jannatbibix

Neptune Corporation's bonds have 15 years to maturity with a coupon rate of 5%. Interest is paid semi-annually. The bonds sold at par value, but the form paid flotation costs amounting to 6.5% of par value. The firm has a marginal tax rate of 21%. What is the firm's after-tax cost of debt for these bonds? a. 5.00%
b. 5.57%
c. 4.46%
d. 5.65%
e. 4.65%

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