The equity shares of Luke Co are currently trading at 125 per share and this share price is expected to grow by 45 per year. The before-tax cost of debt of Luke Co is 10% and the aftertax cost of debt of Luke Co is 7%. What is the current market value of each loan note to the nearest dollar? ABCD9296104E109 5. A company is evaluating the decision whether to lease an asset or to buy it outright using newly borrowed funds. Which of the following is the BEST discount rate to use for the evaluation, assuming that the decision has already been taken to acquire the asset? A Post tax cost of debt B WACC C Cost of equity (p) 37 D Pre-tax cost of debt (Kaplan Text CIMA F3 - TYU Q6)