Question: Suppose a company's capital structure includes a debt with maturity of 10 years and marginal tax rate of 40%. If the company's rating is AAA

Suppose a company's capital structure includes a debt with maturity of

Suppose a company's capital structure includes a debt with maturity of 10 years and marginal tax rate of 40%. If the company's rating is AAA and the yield on the debt with the same similar 3.65% debt rating is 5%, the company's before tax cost of debt is 5%. Calculate the after-tax cost of debt. 4%% 3% 5%

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