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Find average cost of loans for weighted average after-tax

The long -term debt of Duplex Co. consists of bonds with an average cost of 7.5% and term loans. If the firm's tax rate is 40%, and bonds comprise 74% of total long-term debt, what would be the average cost of the term loans if the weighted average after-tax cost of debt is 4.578%?

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Finance Basics: Find average cost of loans for weighted average after-tax

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find average cost of loans for weighted average after-tax

Reference No:- TGS0675114

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find total amount of interest paid in first payments

Q : Describe how mancuscos control of variable manufacturing

Q : Data for the segment

Q : A proposed new investment has projected sales

Q : Find average cost of loans for weighted average after-tax

Q : Projects payback period-project npv

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find average cost of loans for weighted average after-tax

Reference No:- TGS0675114

Recent Questions Asked Finance Basics

Q : Find total amount of interest paid in first payments

Q : Describe how mancuscos control of variable manufacturing

Q : Data for the segment

Q : A proposed new investment has projected sales

Q : Find average cost of loans for weighted average after-tax

Q : Projects payback period-project npv

Q : Book review on ali eteraz book-children of the dust

Q : The system requires an initial investment

Q : Lopez company has been approached by a new customer

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