WSJ Corp issued debt with a coupon rate of 8%, 5 years maturity, and selling...
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Finance
WSJ Corp issued debt with a coupon rate of 8%, 5 years maturity, and selling price of $1,000. What is the after-tax cost of debt if the marginal tax rate of the firm is 40%?
A.
4.8%
B.
4.0%
C.
3.2%
D.
3.8%
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