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J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has a coupon rate of 4 percent annually.

What is the company's pretax cost of debt?

Pretax cost of debt %

If the tax rate is 35 percent, what is the aftertax cost of debt?

Aftertax cost of debt %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92754102

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