Billy bob inc is preparing to calculate its cost of debt it, Financial Management

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Billy bob inc is preparing to calculate its cost of debt it

Billy Bob Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxes. What is the after-tax cost of debt?

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Financial Management: Billy bob inc is preparing to calculate its cost of debt it

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Financial Management: Billy bob inc is preparing to calculate its cost of debt it

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