Multiple Choice
A firm has outstanding debt paying annual coupons,with a coupon rate of 5%,and 10 years to maturity.The firm's bonds are currently trading at a price of $950 per $1000 face value.What is the firm's cost of debt if it has a tax rate of 15%?
A) 5.7%
B) 5%
C) 4.8%
D) 4.25%
E) 5.4%
Correct Answer:
Verified
Correct Answer:
Verified
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