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Business, 07.12.2019 02:31 jrff3262

Drogo, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with 23 years to maturity that is quoted at 97 percent of face value. the issue makes semiannual payments and has an embedded cost of 5 percent annually. what is the company’s pretax cost of debt? if the tax rate is 35 percent, what is the aftertax cost of debt? if the tax rate is 35 percent, what is the aftertax cost of debt?

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Drogo, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with 23...
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