Question
Marysa Corp. issued a 10-year, 5 percent semiannual bond 4 years ago. The bond currently sells for 94 percent of its face value. The
Marysa Corp. issued a 10-year, 5 percent semiannual bond 4 years ago. The bond currently sells for 94 percent of its face value. The company's tax rate is 21 percent. a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Pretax cost of debt % b. Aftertax cost of debt %
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Get StartedRecommended Textbook for
Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
8th edition
78034752, 978-0078034756
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