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Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 21 years to maturity that is quoted
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 21 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually. a. what is the company's pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the tax rate is 25 percent, what is the aftertax cost of debt? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 declmal places, e.g 32.16.) a. Pretax cost of debt b. Aftertax cost of debt
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