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Lugget Corp. has one bond issue outstanding with an annual coupon of 4.4%, a face...

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Accounting

Lugget Corp. has one bond issue outstanding with an annual coupon of 4.4%, a face value of $1,000 and a price of $1,215.58, which matures in 10 years. The company's marginal tax rate is 27%.

What is Lugget's pre-tax cost of debt?

What is the company's after-tax cost of debt?

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