ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt...

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ICU Window, Inc., is trying to determine its cost of debt. Thefirm has a debt issue outstanding with seven years to maturity thatis quoted at 110 percent of face value. The issue makes semiannualpayments and has an embedded cost of 8.2 percent annually.

What is the company’s pretax cost of debt? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

Pretax cost of debt            %

If the tax rate is 30 percent, what is the aftertax cost of debt?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)

Aftertax cost of debt            %

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Information providedFace value future value 1000Present value 1101000 1100Time 7 years2 14 semiannual See Answer

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ICU Window, Inc., is trying to determine its cost of debt. Thefirm has a debt issue outstanding with seven years to maturity thatis quoted at 110 percent of face value. The issue makes semiannualpayments and has an embedded cost of 8.2 percent annually.What is the company’s pretax cost of debt? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.) Pretax cost of debt %If the tax rate is 30 percent, what is the aftertax cost of debt?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.) Aftertax cost of debt %