Multiple Choice
If a corporation has an average tax rate of 40 percent, the approximate annual, after-tax cost of debt for a 10-year, 8 percent, $1,000 par value bond selling at $1,150 is ________.
A) 3.6 percent
B) 4.8 percent
C) 6 percent
D) 8 percent
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q83: The cost of capital is used to
Q84: A firm may face increase in the
Q85: The net proceeds used in calculation of
Q86: Weights that use accounting values to measure
Q87: The weighted average cost that reflects the
Q89: The cost of capital reflects the cost
Q90: The cost of new common stock financing
Q91: The cost of common stock equity is
Q92: Table 9.2<br>A firm has determined its optimal
Q93: The cost of preferred stock is the