Business, 04.12.2019 02:31 brsglover8355

Werrier company is in a 45 percent tax bracket and has a bond outstanding that yields 11 percent to maturity. a. what is terrier’s aftertax cost of debt? (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. assume that the yield on the bond goes down by 1 percentage point, and due to tax reform, the corporate tax rate falls to 30 percent. what is terrier’s new aftertax cost of debt? (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)

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Werrier company is in a 45 percent tax bracket and has a bond outstanding that yields 11 percent to...

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