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What is the annual net cash cost of this borrowing

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Reference no: EM132805268

Question - If a corporation issued $4070000 in bonds that pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

A. $61050

B. $203500

C. $2035000

D. $142450

Reference no: EM132805268

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