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1.Meanwhile, the following chart provides a breakdown of debt for Acme Dynamite: Issue Amount Current Price YTM Senior Debentures @ 5.65% Due 4/1/22 $135.5 million

1.Meanwhile, the following chart provides a breakdown of debt for Acme Dynamite:

Issue

Amount

Current Price

YTM

Senior Debentures @ 5.65% Due 4/1/22

$135.5 million

$1,085

5.21%

Subordinated Bonds @ 8.2% Due 6/30/25

$195.6 million

$1,439

5.72%

Senior Mortgage Bonds @ 6.8% Due 12/30/20

$130.4 million

$1,093

6.22%

What is Acme Dynamite'safter-taxcost of debt if the tax rate is 35%?

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