The outstanding debt of Berstin Corp.has eight years to maturity,a current yield of 8%,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)5.6%
B)6.5%
C)8.5%
D)7.2%
E)7.9%

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The Answer of The outstanding debt of Berstin Corp.has eight years to maturity,a current yield of 8%,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)5.6%
B)6.5%
C)8.5%
D)7.2%
E)7.9%

The Outstanding Debt of Berstin Corp