32.After-tax Cost of DebtThe Heuser Company’s currently outstanding bonds have a 10% coupon and a 14% yield to maturity.
June 7th, 2024
32.After-tax Cost of DebtThe Heuser Company’s currently outstanding bonds have a 10% coupon and a 14% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Heuser’s after-tax cost of debt? Round your answer to two decimal places.