Multiple Choice
If a corporation has an average tax rate of 40 percent, the approximate annual, aftertax cost of debtfor a 10-year, 8 percent, $1,000 par value bond selling at $1,150 is
A) 6 percent.
B) 8 percent.
C) 4.2 percent.
D) 4.8 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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