One Step, Inc., is trying to determine its cost of debt. The firm has a...
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| One Step, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 17 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 6 percent. |
| What is the company's pretax cost of debt? |
| If the tax rate is 21 percent, what is the aftertax cost of debt? |
| (For all requirements, do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) rounded to 2 decimal places, e.g., 32.16.) Please show work using formulas or calculator not an excel spreadsheet. Thanks. |
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