Toronto Skaters has issued $100 million in bonds paying 6% interest per year.The firm has a tax rate of 45%.The firm's annual interest payments are ______ and the after-tax cost of the debt is ______ per year.
A) $6 million, $6 million
B) $6 million, $2.7 million
C) $6 million, $3.3 million
D) $3.3 million, $2.7 million
Correct Answer:
Verified
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