A Firm Has Outstanding Debt with a Coupon Rate of 9%,nine

question 59

Multiple Choice

A firm has outstanding debt with a coupon rate of 9%,nine years maturity,and a price of $1000 per $1000 face value.What is the after-tax cost of debt if the marginal tax rate of the firm is 30%?

• A)4.9%
• B)6.3%
• C)5.8%
• D)5.9%

---

Definitions:

Assertiveness Skills

Assertiveness skills involve the ability to express one's opinions and needs in a direct, honest, and respectful manner.

Personal Comments

Subjective remarks or observations made by an individual.

Uncomfortable

A feeling of physical or psychological distress or unease.

Inappropriate

Not suitable or proper in the context or situation.