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Business, 18.12.2019 01:31 koreanrice101

Nico trading corporation is considering issuing long-term debt. the debt would have a 30-year maturity and a 10 percent coupon rate. in order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. in addition, the firm would have to pay flotation costs of 5 percent of face value. the firm's tax rate is 35 percent. given this information, the after-tax cost of debt for nico trading would be ) 7.26%b) 11.17%c) 10.00%d) 9.00%

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