Question: Problem 3 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.6%, a face value of $1,000 and a price of

Problem 3 Intro Lugget Corp. has one bond issue outstanding with

Problem 3 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.6%, a face value of $1,000 and a price of $1,051.18, which matures in 10 years. The company's marginal tax rate is 26%. 8 Attempt 1/3 for 10 pts. Part 1 What is Lugget's pre-tax cost of debt? 4+ decimals Submit IB Attempt 1/3 for 10 pts. Part 2 What is the company's after-tax cost of debt? 4+ decimals Submit

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