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Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 8 years to maturity that is quoted

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Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 8 years to maturity that is quoted at 109.5 percent of face value. The issue makes semiannual payments and has a coupon rate of 76 percent annually. a. What is the company's pretax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimat places, e.9. 32.16. b. If the tax rate is 25 percent, what is the aftertax cost of debt? Note: Do not round intermedlate calculations and enter your answer as a percent rounded to 2 decimat piaces, .9. 32.16

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