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debt information -$1,000,000,000 in outstanding debt (face value) -current coupon rate = 9% (semiannual coupons) -current quote = 110 -15 years maturity -tax rate 40%
debt information -$1,000,000,000 in outstanding debt (face value) -current coupon rate = 9% (semiannual coupons) -current quote = 110 -15 years maturity -tax rate 40% a) what is the cost of debt? b) what is the after tax cost of debt?
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