Revive Co. has outstanding 20-year noncallable bonds with a face value of $1000. These bonds have a current market price of $1382.73 and an annual coupon rate of 13%. The comp; any faces a tax rate of 35%.
If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt? A. 6.9%B 5.75%C 5.18%D 6.61%
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Revive Co. has outstanding 20-year noncallable bonds with a face value of $1000. These bonds have a current market price of $1382.73 and an ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Revive Co. has outstanding 20-year noncallable bonds with a face value of $1000. These bonds have a current market price of $1382.73 and an annual coupon rate of 13%. The comp; any faces a tax rate of 35%.