Solved: Bat inc has a 1000 face value 2 0 year bond issue selling, Mathematics

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Bat inc has a 1000 face value 2 0 year bond issue selling

BAT Inc. has a $ 1,000 (face value), 2 0 year bond issue selling for $829.73 that pays an annual coupon of 8 .0 percent. Their marginal ta x rate is 25%.

a. What would be BAT 's current before - tax component cost of debt?

a. What would be BAT 's current after - tax component cost of debt?

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Mathematics: Bat inc has a 1000 face value 2 0 year bond issue selling

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Mathematics: Bat inc has a 1000 face value 2 0 year bond issue selling

Reference No:- TGS02837401

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