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After-Tax Cost of Debt Assignment | Homework For You

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May 29th, 2020
Problem 10.01 (After-Tax Cost of Debt) Question 1 of 20  The Holmes Company’s currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is Holmes’ after-tax cost of debt? Round your answer to two decimal places. Get Finance homework help todayHomework For You

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