Problemmicro spinoffs inc issued 10-year debt a year ago at, Ask an Expert

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Problem:

Micro Spinoffs, Inc., issued 10-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,210. If the firm's tax bracket is 20%,

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Question: What is its after-tax cost of debt?

Note: Be sure to show how you arrived at your answer.

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Category:- Basic Finance
Reference No.:- M91148800

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