Determine its cost of debt

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Reference no: EM131495944

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted at 100 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. The tax rate is 36 percent.

A. the company's pretax cost of debt is?

B. the aftertax cost of debt is?

Reference no: EM131495944

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