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The coupon rate on a debt issue is 8%. If the yield to maturity on the debt is 10%, what is the after-tax cost of
| The coupon rate on a debt issue is 8%. If the yield to maturity on the debt is 10%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 32%?(Round your answer to 2 decimal places.) |
a. 8.95%b. 8.15%c. 6.80%d. 5.45%
which one is it ?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
