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PREVIOUS PROBLEM INFO: 4. Calculating Cost of Debt For the firm in the previous problem, suppose the book value of the debt issue is $35
PREVIOUS PROBLEM INFO:
4. Calculating Cost of Debt For the firm in the previous problem, suppose the book value of the debt issue is $35 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $80 million and the bonds sell for 61 percent of par. What is the company's total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt nowStep by Step Solution
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