Alpha Inc., uses debt to finance their company. The firm has a bond issue outstanding...
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Alpha Inc., uses debt to finance their company. The firm has a bond issue outstanding with 8 years to maturity that is priced at $1035. The bond makes semiannual payments and has an annual coupon rate of 5.2%. The face value is $1,000.00. a. What is the company's pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) a. Pretax cost of debt b. If the tax rate is 21%, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) b. Aftertax cost of debt c. What is the value of each coupon? (Do not round intermediate calculations and enter your answer as a dollar rounded to 2 decimal places, e.g. 12.34.) c. Amount of each coupon
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