Problemningbo shipping which has an average tax rate of 40, Ask an Expert

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Problem:

Ningbo Shipping, which has an average tax rate of 40 percent, would like to estimate the after-tax cost of debt for a 15-year, 12 percent, $1,000 par value bond, selling at $950. Based on this information, the after-tax cost of debt is:

None of the above
12.8%
12.0%
7.7%
15.0%

Note: Show step by step solution and I also want complete calculation.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173335

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