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Business, 11.12.2019 02:31 monserratmendezca20

J& r renovation, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with 16 years to maturity that is quoted at 106 percent of face value. the issue makes semiannual payments and has a coupon rate of 6 percent annually. what is the company’s pretax cost of debt?

if the tax rate is 35 percent, what is the aftertax cost of debt?

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