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2 To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an

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To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an interest rate (1) - for a period of seven years. Its marginal federal-plus-state tax rate is 45%. OCP's after-tax cost of debt is (rounded to two (1+1) aces). At the present time, Omni Consumer Products Company (OCP) has 15-year noncaltable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. I OCP wants to Issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 6.729 5.04% 4.48% 5,60% To calculate the atter-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an Interest rate of 9.70% for a period of seven years. Its marginal federal-plus-state tax rate is 45%. OCP's after-tax cost of debt is * rounded to two decimal places) At the present time, Omni Consumer Products 5.34% OCP) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 5.87%carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. 1 OCP want new debt, what would be a reasonable estimate for its after tax cost of debt (rounded to two 9.70% decimal places)? (Note: Round your YTM ratet mal place.) 5.07% 6.729 5.04% 4.48% 5.60%

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