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10. Ivomas is an all-equity utilities company with an EBIT of $10 Million and a tax rate of 35%. The company is planning to borrow

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10. Ivomas is an all-equity utilities company with an EBIT of $10 Million and a tax rate of 35%. The company is planning to borrow $300 million in debt with an interest rate of 8%. What will be the after-tax cost of debt for the firm after the borrowing? Group of answer choices 7.8% 4.8% 8.8% 6.8% 5.8%

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