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Safter-tax cost of debt for purposes

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Reference no: EM131548832

Teton Company's 8% coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. The company's tax rate is 40 percent. What is the firm'safter-tax cost of debt for purposes of calculating the WACC? (hint: You will need to compute the APR quote with quarterly compounding)

Reference no: EM131548832

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