Question 1 (4 points) A company's debt has a market value of $11.1 million, 15...
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Question 1 (4 points) A company's debt has a market value of $11.1 million, 15 years to maturity, and pays a coupon of 7.5% per year, semiannually. If the debt's par value is $10.0 million, what is the company's annual pretax cost of debt financing? 1) 6.64% 2) 7.24% 3) 6.36% 4) 7.50% 5) 6.79%
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