Which is more relevant-the pretax or after tax cost of debt

Reference no: EM13329302

Dominos Corp. issued a 16-year, 6 percentsemiannual bond 2 years ago. The bond currently sells for 91percent of its face value. The company's tax rate is 35 percent,

a. What is the pretax cost of debt?

b. What is the aftertax cost of debt?

c. Which is more relevant, the pretax or the aftertaxcost of debt?

Reference no: EM13329302

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