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Mom's Apple Pies has an 8 percent semiannual coupon bond issue outstanding that is selling for...

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Finance

Mom's Apple Pies has an 8 percent semiannual coupon bond issueoutstanding that is selling for 102 percent of par and whichmatures in 20 years. If Mom's faces an average tax rate of 27%,what will be the after-tax cost of debt?

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Information provided Par value future value 1000 Coupon rate 82 4 Coupon payment 0041000 40 Current price present value    See Answer
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Mom's Apple Pies has an 8 percent semiannual coupon bond issueoutstanding that is selling for 102 percent of par and whichmatures in 20 years. If Mom's faces an average tax rate of 27%,what will be the after-tax cost of debt?

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