Calculating cost of debt, Calculating Cost of Debt. ICU

Calculating cost of debt

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Calculating Cost of Debt. ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semi annual payments and has an embedded cost of 6.1 percent annually. What is ICUs pre tax cost of debt? If the tax rate is 38 percent, what is the after tax cost of debt?

Reference no: EM13806718

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