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Calculate the after-tax cost of a 25 million debt issue

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Calculate the after-tax cost of a 25 million debt issue that Pullman Mfg Corp (40% marginal tax rate( is planning to place privately with a large insurance company. This long term issue will yield 9 3/8% to the insurance company. Use 9.375% for Kd.

Reference no: EM13617896

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