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Jiminy's Cricket Farm issued a 3 0 - year, 5 percent semiannual bond 4 years ago. The bond currently sells for 9 4 percent of
Jiminy's Cricket Farm issued a year, percent semiannual bond years ago. The bond currently sells for percent of its face value. The company's tax rate is percent.
a What is the pretax cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b What is the aftertax cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
tablea Pretax cost of debt,
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