You have been provided th

You have been provided th

You have been provided the information on the cost of debt and cost of capital that a company will have at a 10% debt ratio, and asked to estimate the after tax cost of debt at 23%. The long term treasury bond rate is 5%. Assume the market risk premium is 5.2%. (10 points) Answer format is 12.3 for 12.30% and 17.55 for 17.55%.The interest coverage ratios, ratings and spreads are as follows:

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