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Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted
Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. What is the company's pretax cost of debt?
7.37%
7.00%
8.20%
7.66%
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