What Is the Yield to Maturity on Dotte Inc

question 131

Multiple Choice

What is the yield to maturity on Dotte Inc.'s bonds if its after-tax cost of debt is 10% and its tax rate is 35%?

• A)6.50%
• B)13.50%
• C)15.38%
• D)16.42% 0.10 = r_d(1 - 0.35)

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