Determine after-tax cost of debt


The Heuser Company's currently outstanding bonds have the 8% coupon and 14% yield to maturity. Heuser thinks it could issue new bonds at par that would give a similar yield to maturity. If its marginal tax rate is 35%, Determine Heuser's after-tax cost of debt? Round your answer to two decimal places.

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Mathematics: Determine after-tax cost of debt
Reference No:- TGS0875218

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