Estimate after-tax cost of debt


The mcDaniel company's financing plans for next year include the sale of long term bonds with a 10% coupon. The company believes it can sell the bonds at a price that will provide a yield to maturity of 12%. If the marginal tax rate is 34%, what is Mcdaniel's after-tax cost of debt?

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Finance Basics: Estimate after-tax cost of debt
Reference No:- TGS050094

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