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What is the after-tax cost of short-term debt for company

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Problem 1: A company has a total market value of $150 million, $50 million of which is short-term debt. The cost of that short-term debt was 5.5%. The company has a marginal tax rate of 40%. What is the after-tax cost of short-term debt for the company?

Reference no: EM132623297

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