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Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted
Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted at 93 percent of face value. The issue makes semiannual payments and has an embedded cost of 7 percent annually. Required: What is the company's pretax cost of debt? (Do not round your intermediate (a) calculations.) (Click to select) 7.20% 8.11% 8.19% 7.80% is 34 percent, what is the aftertax cost of debt? (Do not round your alculations.) 7.41% (b)lf the tax rate is 34 percent, what is the aftertax cost of debt? (Do not round your intermediate calculations.) v (Click to select) 5.41% 5.35% 5.15% 4.89% 3.37%
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