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Easy Slider Inc. sold a 15 year $1,000 face value bond with a 10 percent

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Easy Slider Inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. Interest is paid annually. After flotation costs, Easy Slider received $928 per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent.;a. 6.0%;b. 6.6%;c. 7.8%;d. 7.2%

 

Paper#26843 | Written in 18-Jul-2015

Price : $17
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