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(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are

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(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay $954 for the bond and Temple faces a tax rate of 20 percent. What is Temple's after-tax cost of debt on the bond? The after tax cost of debt is 1% (Round to two decimal places.) individual or component costs of capital compute the cost of capital for the firm for the following 2. A bond that has a $1.000 per valor (tace value and a contract or coupon nurent tabe of 114 percent interest payments are $57.00 and we paid semiannually. The bonds have a current market value of 112 and will make in 10 years The's marginal taxei 4 perce A new common stock on that paid a $1 78 dividend last year The Bee's dividends are expected to continue to grow at 7A percent per year forever. The price of the funds common stock is now 5370 A preferred to that was for $156, pays a dividend of 7 percent, and a $100 par value Abond soling to 114 percent where the mistakes percent The cost of Hound two decimal places)

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