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A D E F G 1 B. CL Argon Tech has $30 million market value of 8% yield to maturity bonds, and 2 $10 million

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A D E F G 1 B. CL Argon Tech has $30 million market value of 8% yield to maturity bonds, and 2 $10 million market value of 6% yield to maturity bonds outstanding. If Argon's tax rate is 20%, what is the after-tax cost of debt for Trigon Tech? 3 4 5 Argon Tech average cost of debt 7.50% 6 7 Argon Tech after-tax cost of debt 6.00% 8 9 Why is Argon Tech's true economic cost of debt less than the average cost of debt? 10 11 12 13 14 3 15 16

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