Carraway Seed Company is issuing a $1,000 par value bond that pays 11 percent annual...
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Accounting
Carraway Seed Company is issuing a
$1,000
par value bond that pays
11
percent annual interest and matures in
6
years. Investors are willing to pay
$955
for the bond. Flotation costs will be
12
percent of market value. The company is in a
38
percent tax bracket. What will be the firm's after-tax cost of debt on the bond?
The firm's after-tax cost of debt on the bond will be
enter your response here
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