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    After-tax cost of debt - Heuser Company

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    After-tax cost of debt. The Heuser Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35% what is Heuser's after-tax cost of debt?

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    This solution provides calculations for after-tax cost of debt.