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The cost of debt is determined by taking one of the following: 1) Historical yield on bonds times one minus the tax rate. 2) estimated
The cost of debt is determined by taking one of the following: 1) Historical yield on bonds times one minus the tax rate. 2) estimated yield on new bond issues of the same risk times one minus the shareholder marginal tax rate. 3) present value of the interest payments and principal times one minus the tax rate. I received three different answers the first time out. Thanks much
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