Determine the after-tax cost of the bond

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Bisousatoi Corporation needs RM5,000,000 for its business expansion in Singapore. The firm can raise funds by issuing bonds with a 10 percent coupons. The bond's maturity is ten (10) years, and the floatation cost is 5 percent of the market value of RM950. The current tax bracket of the firm is 25 percent. Determine the after-tax cost of the bond

Reference no: EM133121274

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