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ICU Window, INC.is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted

ICU Window, INC.is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted at 111 percent of face value. The issue makes semiannual payments and has an embedded cost of 8.2 percent annually.

a. What is the company's pretax cost of debt?

b. If the tax rate is 24 percent, what is the after tax cost of debt?

a. Pretax cost of debt b. After tax cost of debt

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