PDA

View Full Version : Calculate the after-tax cost


Angeanette
May 2, 2008, 07:27 PM
Calculate the after tax of a $25 million debt issue with a 40% marginal tax rate. This long term issue will yield 6.6 percent.

fbm
May 7, 2008, 07:53 PM
Is it issued for $25M cash, or is that face value- in that case, what is the period of the debt?