Taxes and costs You need $530,000 and have decided to get it either from bank debt or

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Taxes and costs You need $530,000 and have decided to get it either from bank debt or from issuing equity. The beta on your firm is .35, the risk-free rate is 1.75 %, and the market risk premium is 7.45 %. If your tax rate is 35 %, at what rate would you be better off getting bank debt?

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