What is the after-tax cost of capital for this debt


Great Seneca Inc. sells $100 million worth of 28-year to maturity 10.29% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $991 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the after-tax cost of capital for this debt
Reference No:- TGS02249475

Expected delivery within 24 Hours