23 Jul WHAT IS THE COMPANYS PRETAX COST OF DEBT?
Drogo Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 Show more Drogo Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 4 percent annually. What is the companys pretax cost of debt? ..rounded to 2 decimal places Pretax cost of debt %______________ If the tax rate is 35 percent what is the aftertax cost of debt? rounded to 2 decimal places Aftertax cost of debt %________________ Show less
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