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Question 24. 24. Determine the (after-tax) percentage cost of a $50 million debt issue that the Mattingly Corporation is planning to place privately with a

Question 24.24. Determine the (after-tax) percentage cost of a $50 million debt issue that the Mattingly Corporation is planning to place privately with a large insurance company. Assume that the company has a 40% marginal tax rate. This long-term debt issue will yield 20% to the insurance company. (Points : 3)

4.8% 7.2% 12.0% 10.6%

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