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Consider this information for Company Z, for all the questions. All questions pertain to Year 1, but you might need some Ycar O information to
Consider this information for Company Z, for all the questions. All questions pertain to Year 1, but you might need some Ycar O information to answer some questions. Question 1 What is the firm's pretax cost of debt capital, rD? Use Interest from Year 1 and the Debt from the Beginning of Year 1 (total debt). Question 2 What is the firm's income tax rate? For simple entities with simple accounting like ours, the tax rate comes from just two numbers on the Income Statement. Consider this information for Company Z, for all the questions. All questions pertain to Year 1, but you might need some Ycar O information to answer some questions. Question 1 What is the firm's pretax cost of debt capital, rD? Use Interest from Year 1 and the Debt from the Beginning of Year 1 (total debt). Question 2 What is the firm's income tax rate? For simple entities with simple accounting like ours, the tax rate comes from just two numbers on the Income Statement
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