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Homework: HW ... Question 4, Problem 9-6... Points: 0 of 1 Ter (Cost of debt) The Zephyr Corporation is contemplating a new investment to be
Homework: HW ... Question 4, Problem 9-6... Points: 0 of 1 Ter (Cost of debt) The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $930. The coupon interest rate is 14 percent, and the bonds would mature in 17 years. If the company is in a 38 percent tax bracket, what is the after-tax cost of capital to Zephyr for bonds? The after-tax cost of capital to Zephyr for bonds is 94$5% (Round to two decimal places.)
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