Multiple Choice
The outstanding debt of Berstin Corp.has five years to maturity,a current yield of 6%,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) 4.2%
B) 4.8%
C) 6.9%
D) 7.3%
E) 7.7%
Correct Answer:
Verified
Correct Answer:
Verified
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