Question
A firm has $2 Billion in debt outstanding with a yield to maturity of 5%. The firm pays taxes at the rate of 33%. What
A firm has $2 Billion in debt outstanding with a yield to maturity of 5%. The firm pays taxes at the rate of 33%. What is the firm's effective (after-tax) cost of debt? [Enter your answer as a percentage rounded to two decimal places.]
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Authors: Rebecca W. Anderson
1st Edition
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