Heuser Company's coupon bondsat 10% currentlyoutstandingyield a 12% to maturity. The company is thinking of issuing more
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Question:
Heuser Company's coupon bondsat 10% currentlyoutstandingyield a 12% to maturity. The company is thinking of issuing more bonds at par, giving similar performance. If the marginal tax rate is 35%, what is the cost of your debt after taxes?
Reference book:
Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition
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