What is schenk after-tax cost of debt

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Reference no: EM131932983

The Schenk Company’s currently outstanding bonds have a 9.9 percent coupon and a 14.2 percent yield to maturity. Schenk believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25 percent, what is Schenk’s after-tax cost of debt?

Reference no: EM131932983

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