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00340. ABC Inc. has 10-year, 15% annual coupon bonds that have a face value of $1,000 and sell for $1,252. The companys tax rate is
00340. ABC Inc. has 10-year, 15% annual coupon bonds that have a face value of $1,000 and sell for $1,252. The companys tax rate is 40%. What is the companys after-tax cost of debt?
A. | 7.20% | |
B. | 8.33% | |
C. | 6.46% | |
D. | 4.80% | |
E. | 3.95% |
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