abc corp is undergoing a major expansion. the expansion will be financed by issuing new 12 year $1000 par 9.5% annual coupon bonds. the market price of the bonds is $1125 each. flotation expense on the new bonds will be $50 per bond. the marginal tax rate is 35%. what is the pre tax cost of debt for the newly issued bonds?
Using Excel function Pre tax cost of debt for the newly issued bonds =... View the full answer