If a firm has $5 million of debt outstanding with a coupon rate of 12% with a current yield to maturity on these bonds of 14% and the firm's tax rate is 40%, what is the cost of debt? Please show how you calculated this. Thanks
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If a firm has $5 million of debt outstanding with a coupon rate of 12% with a current yield to maturity on these bonds of 14% and the firm's tax rate is 40%, what is the cost of debt? Please show how you calculated this. Thanks
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