Solution-After-tax component cost of debt

After-tax component cost of debt

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Stern Manufacturing issued a 10-year, 12% semiannual bond 5 years back. The debt issue is currently priced at $925. The firm's marginal tax rate is 39%. What is Stern's after-tax component cost of debt?

Reference no: EM131101173

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After-tax component cost of debt : Stern Manufacturing issued a 10-year, 12% semiannual bond 5 years back. The debt issue is currently priced at $925. The firm's marginal tax rate is 39%. What is Stern's after-tax component cost of debt?

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After-tax component cost of debt

Reference no: EM131101173

Reference no: EM131101173

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