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Micro Spinoffs Inc. has one issue of debt outstanding. It is a 29-year debt issued 3 years ago at par value with a coupon rate
Micro Spinoffs Inc. has one issue of debt outstanding. It is a 29-year debt issued 3 years ago at par value with a coupon rate of 3.9%, paid annually. Today, the debt is still selling at par value. If the firms tax bracket is 21%, what is its after-tax cost of debt? Assume a face value of $1,000.
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