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Firm PooX has $2 million in outstanding long-term debt (face value), the current quote - 5980. coupon rate of 9%, semiannual coupons 10 years to
Firm PooX has $2 million in outstanding long-term debt (face value), the current quote - 5980. coupon rate of 9%, semiannual coupons 10 years to maturity, and the tax rate - 40%. It also has short-term liabilities (6 months) with a market value of $500,000. if the current value of the equity is $1million with a book value of $1.5 million, what is the after-tax required rate of return on the debt? O 5.599 0 2.7996 4.66% 9.3196 O None of the above
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