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A company issued 7.75%, 17-year bonds with a price of $865. The firm's tax rate is 30%. What is the after-tax cost of debt? 6.56%
A company issued 7.75%, 17-year bonds with a price of $865. The firm's tax rate is 30%. What is the after-tax cost of debt?
| 6.56% | ||
| 5.74% | ||
| 9.37% | ||
| 8.9% |
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ISE Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
18th International Edition
1265074658, 9781265074654
