Happy tree company just issued 100000000 of 10-year bonds, Ask an Expert

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Happy Tree Company just issued $100,000,000 of 10-year bonds with a coupon rate of 3%. The bonds were purchased at face value (par value). The Company paid 2.5% floatation costs. The marginal tax rate for Happy Tree Company is 32%. What is the after-tax cost of the debt to the Company?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92752912

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