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  3. you know that the after-tax cost of debt capital f

you know that the after-tax cost of debt capital for Cullumber is 5.6 percent. Assume...

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Finance

you know that the after-tax cost of debt capital for Cullumber is 5.6 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent.

Calculate the pre-tax cost of debt capital.

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