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 nine years to maturity thatis quoted at 117 percent of face value. The issue makes semiannualpayments and has an embedded cost of 11 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 34 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 1171000 1170Time 9 years2 18 semiannual periodsCoupon See Answer

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ICU Window, Inc., is trying to determine its cost of debt. Thefirm has a debt issue outstanding with nine years to maturity thatis quoted at 117 percent of face value. The issue makes semiannualpayments and has an embedded cost of 11 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 34 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 %