The heuser companys currently outstanding bonds have a 10, Financial Management

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The heuser companys currently outstanding bonds have a 10

AFTER-TAX COST OF DEBT The Heuser Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Hueser 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?

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Financial Management: The heuser companys currently outstanding bonds have a 10

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