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    PaulaMary's Avatar
    PaulaMary Posts: 2, Reputation: 1
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    #1

    Nov 13, 2008, 09:40 AM
    Cost of debt
    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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    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Nov 13, 2008, 09:44 AM

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