Final Q 14
February 19th, 2023
Question 14Great Seneca Inc sells $100 million worth of 29 year to maturity 10.59% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The Firm’s marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing? Use excel or financial calculatorRound answer to two decimal places in percentage form