Heuser believes it could issue new bonds at par that would, Financial Management

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Heuser believes it could issue new bonds at par that would

After-tax Cost of Debt

The Heuser Company's currently outstanding bonds have a 10% coupon and a 13% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.

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Financial Management: Heuser believes it could issue new bonds at par that would

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Financial Management: Heuser believes it could issue new bonds at par that would

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