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Rickos Rickos
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6 years ago
Green Valley Motels has $5 million of debt outstanding with a coupon rate of 8.2%. Currently, the yield to maturity on these bonds is 7.3%. If the firm's tax rate is 34%, what is the after-tax cost of debt to Hill Town Motels?
A) 5.33%
B) 11.23%%
C) 4.75%
D) Cannot be determined because the maturity of the bonds is unknown.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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vanrheevanrhee
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Rickos Author
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#2
6 years ago
I want to thank you for being so helpful
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