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please answer all. Question 2 4 pts calculate the after-tax cost of debt for firms with the following yields to maturity for their new bonds.
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Question 2 4 pts calculate the after-tax cost of debt for firms with the following yields to maturity for their new bonds. Assume the firm's marginal tax rate is 25%. a. YTM = 6.40% b. YTM = 7.8% = Question 3 4 pts repeat parts 1 and b from question 2 using a marginal tax rate of 35%. Question 4 1 pts What effect does raising the tax rate have on the component cost of debt Step by Step Solution
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