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A company has a cost of equity of 16.42% and an unlevered cost of capital of 12.44%.The company has $22,002 in debt that is selling

A company has a cost of equity of 16.42% and an unlevered cost of capital of 12.44%.The company has $22,002 in debt that is selling at par value.The levered value of the firm is $39,076, and the tax rate is 39%.What is the pre-tax cost of debt?

Question 17 options:

7.01%

7.19%

7.38%

7.56%

7.75%

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