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A firm has outstanding debt with a coupon rate of 7%

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A firm has outstanding debt with a coupon rate of 7%, seven years maturity, and a price of $1000;per $1000 face value. What is the after-tax cost of debt if the marginal tax rate of the firm is 30%?

 

Paper#35279 | Written in 18-Jul-2015

Price : $17
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