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16 - Advance plc is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity. which

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16 - Advance plc is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity. which is quoted at 920 percent of face value. The issue makes semiannual payments and has a coupon rate of 4 percent annually. Assume the face value of debt is 1000. If the tax rate is 24 percent, what is the after-tax cost of debt? 2.6996 4.00% 5.3896 None Bo brak

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