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Question with Four possible answers, I just need to know the steps and answer thanks The cost of debt: PackMan Corporation has semiannual bonds outstanding
Question with Four possible answers, I just need to know the steps and answer thanks
The cost of debt: PackMan Corporation has semiannual bonds outstanding with nine years to maturity and are currently priced at $754.08. If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of debt for PackMan if its marginal tax rate is 30 percent? Complete the calculation as is done on Wall Street.
| 7.050% |
| 8.225% |
| 12.095% |
| 11.750% |
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