Multiple Choice
Klein Corp. can issue $1,000 par value bond that pays $90 per year in interest at a price of $980. The bond will have a 10-year life. The firm is in a 35% tax bracket. What is the after-tax cost of debt?
A) 9.14%
B) 9.30%
C) 5.87%
D) 6.8%
Correct Answer:
Verified
Correct Answer:
Verified
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