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  3. 2. dublin international company's marginal tax rat

2. Dublin International Company's marginal tax rate is 30 percent. It can issue 3-year bonds...

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2. Dublin International Company's marginal tax rate is 30 percent. It can issue 3-year bonds with a coupon rate of 8.5 percent and par value of $100. The bonds can be sold now at a price of $98.20 each. The underwriters will charge $2 per bond in issue costs. Determine the appropriate after- tax cost of debt Dublin International should use in a capital budgeting analysis. 7.00% B. 3.85% C. 6.30% D. 5.74% A

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