Question: 1. What is the difference between valuing a debt security and valuing the equity of a company? Explain 2. Assume interest rate on a company's

1. What is the difference between valuing a debt security and valuing the equity of a company? Explain

2. Assume interest rate on a company's debt is 6% and that the company's tax rate is 35%. Compute the cost of debt capital. Show your calculation.


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