(Cost of debf) The Zephyr Corporation is contemplating a new investment to be financed 33...
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(Cost of debf) The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $955. The coupon interest rate is 12 percent, and the bonds would mature in 14 years. If the company is in a 40 percent tax bracket, what is the after-tax cost of capital to Zephyr for bonds? The after-tax cost of capital to Zephye for bonds is \%. (Round to two decimal places.)
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