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What is the after tax cost of debt

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Reference no: EM132800629

Question - The coupon rate on a debt issue is 12%. If the yield to maturity on the debt is 9.33%, what is the after tax cost of debt (for a cost of capital calculation) if the firm's tax rate is 34%?

a. 6.16%

b. 3.17%

c. 7.92%

d. 4.08%

Reference no: EM132800629

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