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Terrier Company is in a 40 percent tax bracket and has a bond outstanding that yields 10 percent to maturity. a. What is Terrier's aftertax

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Terrier Company is in a 40 percent tax bracket and has a bond outstanding that yields 10 percent to maturity. a. What is Terrier's aftertax cost of debt? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. b. Assume that the yield on the bond goes down by 1 percentage point, and due to tax reform, the corporate tax rate falls to 25 percent. What is Terrier's new aftertax cost of debt? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. c. Has the aftertax cost of debt gone up or down from part a to part b

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