The Outstanding Debt of Berstin Corp

question 86

Multiple Choice

The outstanding debt of Berstin Corp.has five years to maturity,a current yield of 6%,and a price of $95.Assume the debt has a face value of $100.What is the pretax cost of debt if the tax rate is 30%?

• A)4.2%
• B)4.8%
• C)6.9%
• D)7.3%
• E)7.7%

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Guiding rules and standards that form the basis of financial accounting practices, ensuring consistency, reliability, and comparability of financial statements.

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The official currency of Canada, used in financial transactions within the country.

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The systematic recording, reporting, and analysis of financial transactions of a business.