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ADK has 30,000 15-year 9 percent semi-annual coupon bonds outstanding. If the bonds currently sell for 111 percent of par and the firm pays an
ADK has 30,000 15-year 9 percent semi-annual coupon bonds outstanding. If the bonds currently sell for 111 percent of par and the firm pays an average tax rate of 21 percent, what will be the before-tax and after-tax component cost of debt?
7.74%;6.11%
7.91%;5.06%
8.05%;5.15%
9%;5%
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