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Question 11 (0.2 points) A firm has $4 Billion in debt outstanding with a yield to maturity of 5%. The firm pays taxes at the
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Answer: Yield to Maturity (ka) = Tax Rotes & 32% S% [without tax effect Therefore, Post tax Kd = - kd (1-tox Rote) 5(1- 0.32)

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