Multiple Choice
USA Manufacturing issued 30-year, 7.5 percent semiannual bonds 6 years ago.The bonds currently sell at 101 percent of face value.What is the firm's aftertax cost of debt if the tax rate is 35 percent?
A) 4.82 percent
B) 5.62 percent
C) 3.76 percent
D) 3.59 percent
E) 4.40 percent
Correct Answer:
Verified
Correct Answer:
Verified
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