Solved: Easy slider inc sold a 15 year 1000 face value bond with a, Taxation

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Easy slider inc sold a 15 year 1000 face value bond with a

Easy Slider Inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. Interest is paid annually. After flotation costs, Easy Slider received $928 per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent.

a. 6.0%
b. 6.6%
c. 7.8%
d. 7.2%

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Taxation: Easy slider inc sold a 15 year 1000 face value bond with a

Reference No:- TGS0785810

Now Priced at $10 (50% Discount)

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Taxation: Easy slider inc sold a 15 year 1000 face value bond with a

Reference No:- TGS0785810

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