Determining after-tax cost of debt

Reference no: EM13152154

After-tax cost of debt The Heuser Company's currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35 percent, what is Heuser's after-tax cost of debt?

Reference no: EM13152154

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