A firm has 20 year 5 million of debt which was acquired 2, Ask an Expert

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A firm has 20 year $5 million of debt which was acquired 2 years ago and is currently selling at 115% of par value. The debt has a coupon rate of 7% and the current tax rate is 35%. What is the before tax cost of debt?

A. 7.00% B. 5.72% C. 5.65% D. 3.67%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91620923

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