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Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Financial Accounting

Transcribed Image Text:Summit Finance Inc. has an outstanding debt with:
Coupon Rate; 7.5% Maturity; 10 years Price; $1,000
Marginal Tax Rate; 35% Question: What is the after-tax
cost of debt for Summit Finance Inc.?
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