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Please complete all parts of problem #11 Lugget Corp. has one bond issue outstanding with an annual coupon of 4.1%, a face value of $1,000

Please complete all parts of problem #11

Lugget Corp. has one bond issue outstanding with an annual coupon of 4.1%, a face value of $1,000 and a price of $1,188.63, which matures in 10 years. The company's tax rate is 25%.

11A) What is Lugget's pre-tax cost of debt?

11B) What is the company's after-tax cost of debt?

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