What is the pre-tax cost of


Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.3% and a yield to maturity of 5.3%.

Simple Corp.'s average tax rate is 18% and its marginal tax rate is 33%.

What is the (pre-tax) cost of debt?

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Financial Management: What is the pre-tax cost of
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