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5) Carla Vista has determined that it could issue $1000 face value bonds with an 8 percent coupon paid semiannually and a 5-year maturity at
5) Carla Vista has determined that it could issue $1000 face value bonds with an 8 percent coupon paid semiannually and a 5-year maturity at $870.41 per bond. If Carla Vistas marginal tax rate is 38 percent, its after-tax cost of debt is closest to:
7.1 percent.
6.8 percent.
6.7 percent.
7.4 percent.
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