Mathematics, 30.07.2019 19:30 dyamondgeorge1oy4nex
(cost of debt) carraway seed company is issuing a $1,000 par value bond that pays 9 percent annual interest and matures in 13 years. investors are willing to pay $960 for the bond. flotation costs will be 15 percent of market value. the company is in a 20 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 nothingm%. (round to two decimal places.)
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