.(Cost of debt) Belton is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15…
June 4th, 2022
.(Cost of debt)
Belton is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15 years.
Investors are willing to pay $958 for the bond.
Flotation costs will be 11 percent of market value.
The company is in an 18 percent tax bracket.