A firm has an outstanding debt with a coupon rate of 55​%, seven
years​ maturity, and...
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Finance
A firm has an outstanding debt with a coupon rate of 55​%, sevenyears​ maturity, and a price of​ $1000 per​ $1000 face value. Whatis the​ after-tax cost of debt if the marginal tax rate of the firmis 30%?
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Information provided Face valueFuture value 1000 Time 7 years Coupon rate 5 Coupon payment 0051000 50 Current price present
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