Multiple Choice
The outstanding debt of Berstin Corp.has eight years to maturity,a current yield of 8%,and a price of $95.Assume the debt has a face value of $100.What is the pretax cost of debt if the tax rate is 30%?
A) 5.6%
B) 6.5%
C) 8.5%
D) 7.2%
E) 7.9%
Correct Answer:
Verified
Correct Answer:
Verified
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