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Posted on Aug 03, 2024

mm materials inc has a debt issue outstanding with 1 1 years to maturity, face value of $ 1 , 0 0 0 and a

mm materials inc has a debt issue outstanding with

11

years to maturity, face value of $

1, 000

and a current market price of $

850 .

The issue makes semiannual payments and has a coupon rate of

7 %

annually. What is the aftertax cost of debt if the tax rate is

25 % ?

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