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Cost of Debt: *St. Louis Spirits Distillery has two bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table
Cost of Debt: *St. Louis Spirits Distillery has two bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate is 22 percent, what is After-Tax Cost of the Company's Debt? Bond Coupon Rate Bond Price Maturity Face Value 1 5.00% $1,042.50 5 $41,700,000 2 6.35% $994.50 10 $49,725,000
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
