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What is Jennifer after tax cost of debt

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Reference no: EM132596829

Question - Jennifer's Boutique has 12,000 bonds outstanding at a quoted price of 98 percent of face value. The bonds mature in eleven years and carry a 9 percent annual coupon. What is Jennifer‘s after tax cost of debt if the applicable tax rate is 35 percent?

a. 5.77 percent

b. 6.04 percent

c. 6.14 percent

d. 6.23 percent

e. 6.33 percent

Reference no: EM132596829

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