Multiple Choice
The outstanding bonds of Tech Express are priced at $989 and mature in 10 years.These bonds have a 6 percent coupon and pay interest annually.The firm's tax rate is 35 percent.What is the firm's aftertax cost of debt?
A) 3.01 percent
B) 3.22 percent
C) 3.35 percent
D) 4.00 percent
E) 4.41 percent
Correct Answer:
Verified
Correct Answer:
Verified
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