Question
A firm has $2 Billion in debt outstanding with a yield to maturity of 6%. The firm pays taxes at the rate of 31%. What
A firm has $2 Billion in debt outstanding with a yield to maturity of 6%. The firm pays taxes at the rate of 31%. 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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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
