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Business, 07.07.2020 16:01 biennhan9796

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted at 100 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. The tax rate is 36 percent. Required:
a. The company's pretax cost of debt is:
b. The aftertax cost of debt is:

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Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11...
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