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Jiminy's Cricket Farm issued a 30-year, 8 percent semiannual bong 7 years ago. The bond currently sells for 95 percent of its face value. The
Jiminy's Cricket Farm issued a 30-year, 8 percent semiannual bong 7 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 35 percent. A) What is the pretax cost of debt? B) What is the aftertax cost of debt? C) Which is more relevant, the pretax or the aftertax cost of debt? Why
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Elements Of Structured Finance
Authors: Ann Rutledge, Sylvain Raynes
1st Edition
0195179986, 978-0195179989
