The cost of Debt and Flotation Costs Supponer a company will new 20 year debt with a por value of $1,000 and a coupon ra

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The Cost Of Debt And Flotation Costs Supponer A Company Will New 20 Year Debt With A Por Value Of 1 000 And A Coupon Ra 1 (8.1 KiB) Viewed 30 times

The cost of Debt and Flotation Costs Supponer a company will new 20 year debt with a por value of $1,000 and a coupon rate of paid annually. The price will be $1,000. The trate is 10% the flotation costs of the issue procured, then what is the stor tax cost of debt? Deregard the tax shield from the amortation of flotation cont. Round your answer to two decital places What if the otition costs were 10% of the bond to Round your answer to two decimal places