After Tax Cost of Debt in a Company
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Company x's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. company x 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 company x's cost of preferred stock, rp?
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The response discusses the steps to compute the after tax cost of debt.
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company x's currently outstanding bonds have a 10% coupon and a 12% ...
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