Mathematics, 07.12.2020 01:50 alwaysneedhelp8420
(Cost of debt) Carraway Seed Company is issuing a $1000 par value bond that pays 8 percent annual interest and matures in 15 years. Investors are willing to pay $980 for the bond. Flotation costs will be 13 percent of market value. The company is in a 25 percent tax bracket. What will be the firm's after-tax cost of debt on the bond?
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(Cost of debt) Carraway Seed Company is issuing a $1000 par value bond that pays 8 percent annual in...
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