Calculate pre-tax cost of debt capital

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Reference no: EM132061019

You know that the after-tax cost of debt capital for Bubbles Champagne is 5.20 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent. Collapse question part (a) Calculate Pre-tax cost of debt capital. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Pre-tax cost of debt capital %

Reference no: EM132061019

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