Question: PLEASE help me with these finance questions! PLEASE SHOW WORK!! P 13-5 (similar to) Question Help * Avicorp has a $13.2 million debt issue outstanding,

PLEASE help me with these finance questions! PLEASE SHOW WORK!!

PLEASE help me with these finance questions! PLEASE SHOW WORK!! P 13-5 (similar to) Question Help * Avicorp has a $13.2 million debt issue

P 13-5 (similar to) Question Help * Avicorp has a $13.2 million debt issue outstanding, with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 94% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? a. The cost of debt is | % per year. (Round to four decimal places.)

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