Question: Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.4%, a face value of $1,000 and a price of $1,125.76,

Intro Lugget Corp. has one bond issue outstanding with an annual coupon

Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.4%, a face value of $1,000 and a price of $1,125.76, which matures in 10 years. The company's tax rate is 28%. Part 1 What is Lugget's pre-tax cost of debt? 4+ decimals Submit Part 2 What is the company's after-tax cost of debt? 4+ decimals Submit BAttempt 1/10 for 9.5 pts. Attempt 1/10 for 9.5 pts.

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