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Marysa Corp. issued a 20-year, 9 percent semiannual bond 3 years ago. The bond currently sells for 96 percent of its face value. The companys

Marysa Corp. issued a 20-year, 9 percent semiannual bond 3 years ago. The bond currently sells for 96 percent of its face value. The companys tax rate is 23 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? multiple choice Aftertax cost of debt Pretax cost of debt

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