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What is the firm after-tax cost of debt

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Question - Teton Company's 8% coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. The company's tax rate is 40 percent. What is the firm's after-tax cost of debt for purposes of calculating the WACC?

Reference no: EM132925296

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