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What is the after-tax cost ofdebt for the firm

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Question 1: Cost of debt for a firm: You are analyzing the after-tax cost of debt for a firm.You knowthat the firm's 12-year maturity, 9.5 percent coupon bonds are selling at a price of $1,200.If these bonds are the only debt outstanding for the firm, what is the after-tax cost ofdebt for this firm if the marginal tax rate for the firm is 34 percent? What if the bondsare selling at par?

Reference no: EM132498223

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