What is the firm aftertax cost of debt

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Reference no: EM132067304

1. Marble Co. issued 10-year, 8 percent semiannual bonds. The bonds currently sell at 110 percent of face value (face value is $1,000). What is the firm's aftertax cost of debt if the tax rate is 20 percent?

3.31 percent

4.69 percent

5.29 percent

6.62 percent

2. Systematic risk is:

also called firm-specific risk.

a risk that affects a large number of assets.

also called diversifiable risk.

the total risk inherent in an individual security.

Reference no: EM132067304

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