Finance micro spinoffs inc issued 10-year debt a year ago, Ask an Expert

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Finance Micro Spinoffs Inc. issued 10-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,210. If the firm’s tax bracket is 20%, what is its percentage after-tax cost of debt? Assume a face value of $1,000.

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Financial Management, Finance

Category:- Financial Management
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