What is the after tax cost of debt

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ouWaller Inc is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quited at 107 % of face value. The issue makes semiannual payments and has an embedded cost of 7% annually. What is the company's pretax cost of debt? If the tax rate is 35%, what is the after- tax cost of debt?

Reference no: EM131283531

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