When determining the after-tax cost of a bond, the face value of the issue must be adjusted to the net proceeds amounts by considering
A. the risk.
B. the flotation costs.
C. the approximate returns.
D. the taxes.
Answer:B
When determining the after-tax cost of a bond, the face value of the issue must be adjusted to the net proceeds amounts by considering
A. the risk. B. the flotation costs. C. the approximate returns. D. the taxes.