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What would be the reasonable after tax cost of debt

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Reference no: EM132097245

Company X has noncallable bond

Tenure = 15 years

Face Value = 1000

Market price = 1300

Coupon rate = 12%

If Company X consider to issue new debt, What would be the reasonable after tax cost of debt? (Federal Tax : 40%)

Reference no: EM132097245

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