What is the aftertax cost of debt
Problem: Ponderosa co. bonds sells for $846.04. The coupon rate is 8 percent and the bonds mature in 25 years. Interest is paid semi-annually and the firm's tax rate is 34 percent. What is the aftertax cost of debt?
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Interest is paid semi-annually and the firm's tax rate is 34 percent. What is the aftertax cost of debt?
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