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A company has a cost of equity of 14.98% and an unlevered cost of capital of 11.06%. The company has $19,740 in debt that is

A company has a cost of equity of 14.98% and an unlevered cost of capital of 11.06%. The company has $19,740 in debt that is selling at par value. The levered value of the firm is $35,092, and the tax rate is 33%. What is the pre-tax cost of debt?

Question options:

6.51%

6.67%

6.84%

7.00%

7.16%

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