Pogo Stick Co can issue debt yielding 10 percent. The company is paying at a 40 percent tax rate. What is the aftertax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt %
Pogo Stick Co can issue debt yielding 10 percent. The company is paying at a 40 percent tax rate. What is the aftertax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt %
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Pogo Stick Co can issue debt yielding 10 percent. The company is paying at a 40 percent tax rate.
What is the aftertax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Cost of debt %
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