Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 3

DuPont reports in a recent balance sheet $1,383 million of 6.00 percent notes payable due in 2018.he company's income tax rate is approximately 20 percent.
a.ompute the company's after-tax cost of borrowing on this bond issue stated as a total dollar amount.
b.ompute the company's after-tax cost of borrowing on this bond issue stated as a percentage of the amount borrowed.
c.escribe briefly the advantage of raising funds by issuing bonds as opposed to stocks.