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Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted
Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has a coupon rate of 6 percent. |
What is the company's pretax cost of debt?
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Aftertax cost of debt | % |
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