What is heuser''s after-tax cost of debt

Reference no: EM13706889

The Heuser Company's currently outstanding bonds have a 8% coupon and a 14% 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%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.

Reference no: EM13706889

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