Multiple Choice
If a corporation has an average tax rate of 40 percent, the approximate, annual, aftertax cost of debtfor a 15-year, 12 percent, $1,000 par value bond, selling at $950 is
A) 6.0 percent.
B) 10 percent.
C) 10.6 percent.
D) 7.6 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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