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3.- Fantasy, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity that is

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3.- Fantasy, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity that is quoted at 103% of face value. The issue makes semiannual payments and has a coupon rate of 5.1% annually. If the tax rate is 21%, what is the after-tax cost of debt? 1 point. A. 3.78% B.3.24% C. 3.63% D. 3.79% E. 3.81%

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