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Author Question: TC, Inc. has 15 million of outstanding bonds with a coupon rate of 10 percent. The yield to ... (Read 68 times)

xroflmao

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TC, Inc. has 15 million of outstanding bonds with a coupon rate of 10 percent. The yield to
  maturity on these bonds is 12.5 percent. If the firm's tax rate is 30 percent, what is relevant cost of
  debt financing to TC, Inc.?
 
  A) 8.75 percent B) 7.00 percent C) 3.75 percent D) 13.75 percent

Question 2

Which of the following should be excluded in an analysis of a new project's cash flows?
 
  A) additional investment in accounts receivable
  B) additional investment in inventory
  C) additional interest expenses on debt financing
  D) additional investment in fixed assets


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ynlevi

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xroflmao

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


alexanderhamilton

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Reply 3 on: Yesterday
Excellent

 

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