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Management ofStanleyCo. isinterestedto determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 97%
- Management ofStanleyCo. isinterestedto determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 97% of face value. The issue makes semiannual payments and has an embedded cost of 5% annually. Assume the par value of the bond is $1,000.What is the company's pre-tax cost of debt?If the tax rate is 35%, what is the after-tax cost of debt?
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Accounting and Financial Analysis in the Hospitality Industry
Authors: Johnathan Hales
1st edition
132458667, 978-0132458665
