Financial Management Unit VI Question 11 - After tax cost...

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Teressa Starks Financial Management Unit VI, Question 11 Amount of debt = 12,000,000*0.10 Amount of debt = 1,200,000 After tax cost of debt = Amount of debt (1 – tax rate)
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Unformatted text preview: After tax cost of debt = 1,200,000(1-0.35) After tax cost of debt = 780,000 Call premium = 0.09*after tax cost of debt Call premium = $702,000...
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This note was uploaded on 05/28/2010 for the course FINANCIAL BBA3301 taught by Professor Allen during the Fall '10 term at Columbia Southern University, Orange Beach.

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