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A firm has a capital structure with 40% debt. A new issue of bonds will have a 10% coupon. The corporate tax rate is 34%.
A firm has a capital structure with 40% debt. A new issue of bonds will have a 10% coupon. The corporate tax rate is 34%. What is the after-tax cost of debt? Select one: O a. 4.42% O b. 3.40% O c.9.66% O d. 6.60% O e. 10.00%
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