What is the firms after-tax cost of debt

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5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,400 face value and a 5% coupon, semiannual payment ($35 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations.

Reference no: EM131303725

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