One Step, Inc., is trying to determine its cost of debt. The firm has a...
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One Step, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 17 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 6 percent.
What is the company's pretax cost of debt?
If the tax rate is 21 percent, what is the aftertax cost of debt?
(For all requirements, do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) rounded to 2 decimal places, e.g., 32.16.)
Please show work using formulas or calculator not an excel spreadsheet. Thanks.
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