Question: Question 10 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.7%, a face value of $1,000 and a price of

Question 10

Question 10 Intro Lugget Corp. has one bond issue outstanding with an

Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.7%, a face value of $1,000 and a price of $1,059.71, which matures in 10 years. The company's marginal tax rate is 30%. Attempt 1/3 for 10 pts. Part 1 What is Lugget's pre-tax cost of debt? 4+ decima Submit Part 2 Attempt 1/3 for 10 pts. What is the company's after-tax cost of debt? 4+ decima Submit

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