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7. Calculating Cost of Debt. Jimmy's Criket Farm issued a 30-year, 5% half-yearly bond seven year ago. The bond currently sells for 98% of its

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7. Calculating Cost of Debt. Jimmy's Criket Farm issued a 30-year, 5% half-yearly bond seven year ago. The bond currently sells for 98% of its face value. The company's tax rate is 30% a. b. What is the pre-tax cost of debt? What is after-tax cost of debt? c. Which is more relevant, the pre-tax or the after-tax cost of debt

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