Wasser, Inc., is trying to determine its cost of debt. The firm has a debt issue...

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Wasser, Inc., is trying to determine its cost of debt. The firmhas a debt issue outstanding with 12 years to maturity that isquoted at 97 percent of face value. The issue makessemiannual payments and has a coupon rate of 10percent. The tax rate is 25 percent. Enter your answers as apercent rounded to 3 decimal places, e.g., enter 32.161% as 32.161,not 0.32161. Hint. Solve for the YTM and adjust for taxes.
The after-tax cost of debt is ……………………… %
Hint: Use a financial calculator to solve for the yield tomaturity of the bonds. Remember the negative sign on the price.Remember to divide/multiply by 2 when entering the PMT and N.Compute I and multiply by 2 to get the yield to maturity (ann).Then multiply by 1-taxrate to get the after-tax cost.

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Information provided Face value future value 1000 Current value present value 0971000 970 Coupon rate 102 5 Coupon payment 0051000 50 Time See Answer

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Wasser, Inc., is trying to determine its cost of debt. The firmhas a debt issue outstanding with 12 years to maturity that isquoted at 97 percent of face value. The issue makessemiannual payments and has a coupon rate of 10percent. The tax rate is 25 percent. Enter your answers as apercent rounded to 3 decimal places, e.g., enter 32.161% as 32.161,not 0.32161. Hint. Solve for the YTM and adjust for taxes.The after-tax cost of debt is ……………………… %Hint: Use a financial calculator to solve for the yield tomaturity of the bonds. Remember the negative sign on the price.Remember to divide/multiply by 2 when entering the PMT and N.Compute I and multiply by 2 to get the yield to maturity (ann).Then multiply by 1-taxrate to get the after-tax cost.