Question 4. Pls help :) Sunrise, Incorporated, is trying to determine its cost...
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Question 4.
Pls help :)
Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 22 years to maturity that is quoted at 97 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually. a. What is the company's pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the tax rate is 23 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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