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Great Seneca Inc. sells $100 million worth of 28year to maturity 1029 annual coupon bonds The net proceeds proceeds after flotation costs are $991 for each $1000 bond The firms marginal tax

Great Seneca Inc. sells $100 million worth of 28-year to maturity 10.29% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $991 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form.

 

Apr 04 2020 View more View Less

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