TC, Inc. has $15 million of outstanding bonds with a coupon rate of 10 percent. The yield to

maturity on these bonds is 12.5 percent. If the firm's tax rate is 30 percent, what is relevant cost of
debt financing to TC, Inc.?

A) 8.75 percent B) 7.00 percent C) 3.75 percent D) 13.75 percent

A

Business

You might also like to view...

The ________ system pulls materials, labor, and overhead costs into production under a just-in-time management system

A) purchase-push B) demand-push C) purchase-pull D) demand-pull

Business

Explain the difference between a title fly and a title page

What will be an ideal response?

Business