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Please help me with this finance question! PLEASE SHOW WORK! P 13-5 (similar to) Question Help * Avicorp has a $10.4 million debt issue outstanding,
Please help me with this finance question! PLEASE SHOW WORK!
P 13-5 (similar to) Question Help * Avicorp has a $10.4 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 93% of par value a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? a. The cost of debt is% per year. (Round to four decimal places.)Step by Step Solution
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