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To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an interest

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To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an interest rate of 7.30% for a period of eight years. Its marginal federal-plus-state tax rate is 30%. OCP's after-tax cost of debt is (rounded to two decimal places). At the present time, Omni Consumer Products Company (OCP) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 30%. If OCP wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 7.53% 6.02% 9.04% 6.78% To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an interest rate (1-T) for a period of eight years. Its marginal federal-plus-state tax (rounded to two deci (1 + 7)). rate is 30%. OCP's after-tax cost of debt is At the present time, Omni Consumer Products Company (OCP) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 30%. If OCP wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 7.53% 6.02% 9.04% 6.78% To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Omni Consumer Products Company (OCP) can borrow funds at an interest rate of 7.30% for a period of eight years. Its marginal federal-plus-state tax rate is 30%. OCP's after-tax cost of debt is (rounded to two decimal places). At the present time, Omni Consumer Produc bonds have a current market price of $1,18 federal-plus-state tax rate of 30%. If OCP w decimal places)? 7.53% 6.02% 9.04% 6.78% 4.34% 5.11% 4.85% 5.88% ny (OCP) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These ond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incurs a sue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two

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