Business, 01.06.2021 14:00 blacee01

Carraway Seed Company is issuing a $1,000 par value bond that pays 8 percent annual interest and matures in 9 years. Investors are willing to pay $935 for the bond. Flotation costs will be 9 percent of market value. The company is in a 30 percent tax bracket. What will be the firm's after-tax cost of debt on the bond? The firm's after-tax cost of debt on the bond will be %. (Round to two decimal places.)

Carraway Seed Company is issuing a $1,000 par value bond that pays 8 percent annual interest and ma

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Carraway Seed Company is issuing a $1,000 par value bond that pays 8 percent annual interest and mat...

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