Question: a) Telecom Systems can issue debt yielding 4 percent. The company is in a 35 percent bracket. What is its aftertax cost of debt? b)

a) Telecom Systems can issue debt yielding 4 percent. The company is in a 35 percent bracket. What is its aftertax cost of debt?

b) Telecom Systems has an aftertax cost of debt of 8.50 percent. With a tax rate of 30 percent, what can you assume the yield on the debt is

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