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Posted: February 23rd, 2024

U. Memphis COURSE FIR 3410 After-tax Cost of Debt The Heuser Company’s currently outstanding bonds

32.After-tax Cost of DebtThe Heuser Company's currently outstanding bonds have a 10% coupon and a 14% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.

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