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Walter's Distributors Has a Cost of Equity of 13

question 60

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Walter's Distributors has a cost of equity of 13.84% and an unlevered cost of capital of 12%.The company has $5,000 in debt that is selling at par value.The levered value of the firm is $12,000 and the tax rate is 34%.What is the pre-tax cost of debt?


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Flexible Work Schedules

Work arrangements that allow employees to vary their starting and ending times, and work hours, promoting work-life balance.

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