Multiple Choice
The outstanding debt of Berstin Corp.has ten years to maturity,a current yield of 7%,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) 4.9%
B) 6.5%
C) 7.0%
D) 7.37%
E) 8.15%
Correct Answer:
Verified
Correct Answer:
Verified
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