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

18 - Advance plc is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 4.2 percent annually. If the tax rate is 24 percent, what is the after-tax cost of debt? 3.844% 4.445% 6.887% 5.057% 0132 Bo brak

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