Growth Company has existing debt issued three years ago with a coupon rate of 6.0...
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Growth Company has existing debt issued three years ago with a coupon rate of 6.0 %. The firm just issued new, otherwise identical debt at par with a coupon rate of 6.5%. Thus for Growth Company's pre-tax cost of debt, it should use a weighted average of 6.0 % and 6.5 %. True O False
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