period is less than one year. 04) The payback rule is biased in favor of long-term...

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period is less than one year. 04) The payback rule is biased in favor of long-term projects The payback period considers the

Answer 1

Answer #1

6. After tax cost of debt =YTM*(1-Tax Rate) =6%*(1-38%) =3.872%
Firm's effective after tax cost of debt =3.872% or 3.87%

Answer 2

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