Question: 1. (9 points) ACT Inc. has a $1,000 (face value), 30 year bond issue selling for $719.90 that pays an annual coupon of 10.0 percent.

1. (9 points) ACT Inc. has a $1,000 (face value), 30 year bond issue selling for $719.90 that pays an annual coupon of 10.0 percent. Their marginal tax rate is 25%. a. What would be BAT's current before-tax component cost of debt? a. What would be BAT's current after-tax component cost of debt

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