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Business, 02.09.2019 20:20 navypeanut

He stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. the beta is 1.25, the yield on a 6-month treasury bill is 3.50%, and the yield on a 20-year treasury bond is 5.50%. the required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. the firm's tax rate is 40%. what is the best estimate of the after-tax cost of debt?

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He stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7...
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