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What is the company after-tax cost of debt

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Question - Dog Gone Good Engines has a bond issue outstanding with 17 years to maturity. These bonds have a $1,000 face value, a 9 percent coupon, and pay interest semi-annually. The bonds are currently quoted at 82 percent of face value. What is the company's after-tax cost of debt if the tax rate is 38 percent?

Reference no: EM133188286

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