A corporate bond has a face value of $1,000 and a coupon rate of 9%. The bond matures in 14 years
and has a current market price of $946. If the corporation sells more bonds, it will incur flotation
costs of $26 per bond.
If the corporate tax rate is 35%, what is the after-tax cost of debt capital?
A) 6.56% B) 5.57% C) 8.18% D) 7.31%
A
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Implementation of this REA diagram into a relational database would require how many tables?
A) 12
B) 13
C) 8
D) 9
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Which of the following is true regarding the establishment of a public purpose?
A)?A narrow interpretation is given to the term B)?There must be a public road, park, school or other facility involved C)?Private property cannot be affected D)?None of the above
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