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Pearce's Cricket Farm issued a 30 year, 8 percent semiannual bond 3 years ago. The bond currently sells for $930. The company's tax rate is
Pearce's Cricket Farm issued a 30 year, 8 percent semiannual bond 3 years ago. The bond currently sells for $930. The company's tax rate is 35 percent. Assume the par value of the bond is $1000. 5. a. What is the pre-tax cost of debt? b. What is the after-tax cost of debt
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