Franklin Mining has 15 yr, 8% annual coupon bond outstanding. Bond has a current market price of $885.54 and a face value of $1,000. If Franklin's marginal tax rate is 35% what is its relevant after-tax component cost of debt, rd (1-T)?
I need to understand the detailed steps on how to approach a problem like this. Please give me detailed instructions. I will try to use excel, but I do not know how the formulas work.
Please help! Thank you.© BrainMass Inc. brainmass.com June 4, 2020, 2:46 am ad1c9bdddf
The cost of debt and preferred stock is examined.