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(Cost or debt) I he Lephyr Corporation is contemplating a new investment to be financed 33 percent from debt. I he firm

Posted: Wed Apr 06, 2022 9:12 am
by answerhappygod
(Cost or debt) I he Lephyr Corporation is contemplating a new investment to be financed 33 percent from debt. I he firm could sell new $1,00U par value bonds at anet price of $940. The coupon interest rate is 13 percent, and the bonds would mature in 12 ears. If the company is in a 40 percent tax bracket, what is the after-taxcost of capital to Zeohvr for bonds?The after-tax cost of capital to Zephyr for bonds is %. (Round to two decimal places.'
(Cost or debt) I he Lephyr Corporation is contemplating a new investment to be financed 33 percent from debt. I he firm could sell new $1,00U par value bonds at a
net price of $940. The coupon interest rate is 13 percent, and the bonds would mature in 12 ears. If the company is in a 40 percent tax bracket, what is the after-tax
cost of capital to Zeohvr for bonds?
The after-tax cost of capital to Zephyr for bonds is %. (Round to two decimal places.'