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A company has a cost of equity of 15.94% and an unlevered cost of capital of 11.98%. The company has $21,160 in debt that is

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A company has a cost of equity of 15.94% and an unlevered cost of capital of 11.98%. The company has $21,160 in debt that is selling at par value. The levered value of the firm is $37,618, and the tax rate is 37%. What is the pre-tax cost of debt? 6.91% 7.09% 7.27% 07.45% 7.62%

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