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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 38
Molex Inc., a manufacturer of cable assemblies for polycrystalline photovoltaic solar modules, requires $3.1 million in debt capital. The company plans to sell 15-year bonds that carry a dividend of 6% per year, payable semiannually. Molex has an effective tax rate of 32% per year. Determine
a) the nominal annual after-tax cost of debt capital and b) the effective annual after-tax cost of debt capital.
a) the nominal annual after-tax cost of debt capital and b) the effective annual after-tax cost of debt capital.
Explanation
Verified
Verified
10.23 Bond interest = 
= $93,000 every 6...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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