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What is the annual net cash cost of borrowing

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Question - If a corporation issued $4,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

Reference no: EM131806355

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What is the annual net cash cost of borrowing : If a corporation issued $4,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%
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