Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing
new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each.
Crandal's flotation expense on the new bonds will be $50 per bond. Crandal's marginal tax rate is
35%. What is the pre-tax cost of debt for the newly-issued bonds?
A) 10.25% B) 8.76% C) 7.49% D) 8.12%
B
Business
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The purpose of a(n) ________ is to conserve on foreign exchange and to protect local industry and employment.
A. treaty B. quota C. importing D. monetary control
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The forecasting section of a marketing plan includes predictions for both revenues and expenses
Indicate whether the statement is true or false
Business