View History Bookmarks Window Edit Help 49 % Sat 3:27 PM a mathxl.com FIN 3013-Section 002 11/9/19 3:26 P Janay Vela& Homework: Chapter 13 Part 1 Homework Sa Score: 0 of 1 pt. 3 of 8 (0 complete) HW Score: 0%, 0 of 8 P 13-6 (similar to) Question Help Avicorp has a $10.2 million debt issue outstanding, with a 5.8 % 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 96 % of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual returm b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. The cost of debt is % per year. (Round to four decimal places.) Enter your answer in the answer box and then click Check Answer check Answer part remaining Cior A To see what to study next, go to your Study Plan. OK