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. Calculating Cost of Debt For the firm in Problem 6 , suppose the book value of the debt issue is $ 1 3 5
Calculating Cost of Debt For the firm in Problem suppose the book value of the debt issue is $ million. In addition, the company has a second debt issue, a zero coupon bond with years left to maturity; the book value of this issue is $ million, and it sells for percent of par. What is the total book value of debt? The total market value? What is the aftertax cost of debt now?
Calculating Cost of Debt For the firm in Problem suppose the book
value of the debt issue is $ million. In addition, the company has a
second debt issue, a zero coupon bond with years left to maturity; the
book value of this issue is $ million, and it sells for percent of par.
What is the total book value of debt? The total market value? What is the
aftertax cost of debt now?
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