Multiple Choice
The outstanding debt of Berstin Corp. has eight years to maturity, a current yield of 7%, and a price of $85. What is the pretax cost of debt if the tax rate is 40%?
A) 5.1%
B) 5.9%
C) 8.5%
D) more information needed
Correct Answer:
Verified
Correct Answer:
Verified
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