The company pretax cost of debt is percent

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Waller. Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 7 percent annually. The company's pretax cost of debt is percent. If the tax rate is 35 percent, the aftertax cost of debt is percent. (Do not include the percent signs (%). Round your answers to 2 decimal places, (e.g., 32.16))

Reference no: EM131555465

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