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What is ahmads after-tax cost of debt

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Reference no: EM132498626

Question 1: Ahmad Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8%. Ahmad believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Ahmad's after-tax cost of debt?

Reference no: EM132498626

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