Question: The Mountaineer Airline Company (MAC) has consulted with its investment bankers and determined that they could issue new debt with a yield to maturity (YTM)

  1. The Mountaineer Airline Company (MAC) has consulted with its investment bankers and determined that they could issue new debt with a yield to maturity (YTM) of 8%. If Mountaineer ' marginal tax rate is 30%,

What is the after-tax cost of debt to MAC?

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