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Belton Distribution Company is issuing a $1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay

Belton Distribution Company is issuing a ​$1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay ​$958 for the bond. The company is in the18 percent marginal tax bracket.

The​ firm's after-tax cost of debt on the bond is ---------% ​(Round to two decimal​ places.)

Jun 26 2021 View more View Less

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