QRM, Inc's marginal tax rate is 35. It can issue 10-year bonds ...

[shofmannx20]

QRM, Inc's marginal tax rate is 35. It can issue 10-year bonds with an annual coupon rate of 7
  and a par value of 1,000. After 12 per bond flotation costs, new bonds will net the company 966
  in proceeds.
 
  Determine the appropriate after-tax cost of new debt for the firm to use in a capital
  budgeting analysis.
  A) 7.50 B) 4.87 C) 7.8 D) 2.62

Question 2

A discretionary form of financing would be
 
  A) accrued expenses. B) accounts payable.
  C) notes payable. D) A and B

[aham8f]

Answer to Question 1

B

Answer to Question 2

C