What is the aftertax cost of debt

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Reference no: EM132061425

Jiminy's Cricket Farm issued a 30-year, 8.4% semiannual bond 9 years ago. The bond currently sells for 90.5 percent of its face value. The company’s tax rate is 30 percent.

What is the pretax cost of debt?

What is the aftertax cost of debt?

Reference no: EM132061425

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