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3, Young Corp. has $30 million debt issue outstanding, with an 8% coupon rate. The coupons are paid semi-annually. The debt matures in five years
3, Young Corp. has $30 million debt issue outstanding, with an 8% coupon rate. The coupons are paid semi-annually. The debt matures in five years and is currently priced at 105% of par value. a) What is the pretax cost of debt of Young Corp.? (4 points) b) If Young Corp. faces a 35% tax rate, what is its after-tax cost of debt
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