Question: 1: P9-5 Page 444 C, D, E (30 points) Cost of debt using the approximation formula; Solve for the before tax and after tax cost

1: P9-5 Page 444 C, D, E (30 points) Cost of debt using the approximation formula; Solve for the before tax and after tax cost of debt. Before-tax cost of debt rd = After-tax cost of debt = ri = rd (1 - T) Bond C Before-tax cost of debt = ________________ After-tax cost of debt = ____________ Bond D Before-tax cost of debt = ________________ After-tax cost of debt = ____________ Bond E Before-tax cost of debt = ________________ After-tax cost of debt = ____________

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