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For Hewlett Software Corporation described in problem 9, assume that the yield on the bonds goes up by 1 percentage point and that the tax
For Hewlett Software Corporation described in problem 9, assume that the yield on the bonds goes up by 1 percentage point and that the tax rate is now 45 percent. a. What is the new aftertax cost of debt? b. Has the aftertax cost of debt gone up or down from problem 9? Explain why
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