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What would be bats current after-tax component cost of debt

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Question - ACT Inc. has a $1,000 (face value), 20-year bond issue selling for $1,229.40 that pays an annual coupon of 8.0 percent. Their marginal tax rate is 25%.

Required -

a. What would be BAT's current before-tax component cost of debt?

b. What would be BAT's current after-tax component cost of debt?

Reference no: EM133018567

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