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Jiminy's Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon...

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Accounting

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Jiminy's Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 4 percent 6 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 25 percent. a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Which is more relevant, the pretax or the aftertax cost of debt? Aftertax cost of debt Pretax cost of debt

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