Calculating cost of debt lo 2 icu window inc is trying to


Calculating Cost of Debt [LO 2] ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 112 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. Requirement 1: What is ICU’s pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Pretax cost of debt % Requirement 2: If the tax rate is 34 percent, what is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Aftertax cost of debt %

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Financial Management: Calculating cost of debt lo 2 icu window inc is trying to
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