(Cost of debf) Carraway Seed Company is issuing a $1,000 par value bond that pays...
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(Cost of debf) Carraway Seed Company is issuing a $1,000 par value bond that pays 7 percont annual interest and matures in 13 years. Investors ave wiling to pay $935 for the bond. Flotation costs will be 15 percent of market value. The company is in a 30 percent tax bracket. What will be the firm's attertax cost of dobt on the bond? The firm's after-tiox cont of debt on the bond will be 4. (Round to two decimal places)
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