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Problems 9-1. a. What wuuld he the aertax cast of debt for a. company with the i Cost of Debt following yields to maturity for
Problems 9-1. a. What wuuld he the aertax cast of debt for a. company with the i Cost of Debt following yields to maturity for its new hands, if the applicable tax rate were 40' percent? (i) YTM = 7% (ii) YTM = l 1% {iii} YTM = 13% b. How would the cost of debt change if the applicable tax rate were 34 percent
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