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05-06-2020
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The Capital structure of a firm includes bonds with a coupon rate of 12% and an effective interest rate of 14%. The corporate tax is 30%. What is the firm’s net cost of debt?
A. 9.8%
B. 8.4%
C. 14%
D. 12%

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Xxcool12 Xxcool12

05-06-2020

The answer for this question would be C , Hope this helps :)

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