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Save Score: 0 of 1 pt 6 of 26 (13 complete) HW Score: 42.31%, 11 of 26 P 13-6 (similar to) Avicorp has a $106

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Save Score: 0 of 1 pt 6 of 26 (13 complete) HW Score: 42.31%, 11 of 26 P 13-6 (similar to) Avicorp has a $106 million debt issue outstanding with a 61% coupon rate. The dete has manual coupons, the next coupon is de mort, and the debt matures in five years is curredowe a. What is Avico's pre-tax cost of debt? Note: Compute the effectiven b. If Avicorp faces a 40% tax rate what is its or tax cost of det? Note: Assume that the form will always be able to us interest to held a. The cost of debt is per year. (Rourd to fou decipes) Enter your answer in the answer box and then click Check

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