Business, 12.12.2019 03:31 Natalierg05

"easy rider inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. interest is paid annually. after flotation costs, easy rider received $928 per bond. compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent.

a) 22%
b) 11%
c) l3%
d) 6.6%
e) 4.4%"

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"easy rider inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. interest is pa...