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(Cost of debt) Carraway Seed Company is issuing a $1,000 par value bond that pays 6 percent annual interest and matures
Posted: Mon Apr 25, 2022 8:44 am
by answerhappygod
- Cost Of Debt Carraway Seed Company Is Issuing A 1 000 Par Value Bond That Pays 6 Percent Annual Interest And Matures 1 (13.43 KiB) Viewed 35 times
(Cost of debt) Carraway Seed
Company is issuing a $1,000 par value bond that pays 6 percent annual interest and matures in 6 years. Investors are willing to pay $970 for the bond. Flotation costs will be 12 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? The firm's after-tax cost of debt on the bond will be % (Round to two decimal places.)