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A firm has outstanding debt with a coupon rate of 7%, seven years maturity, and a price of $1,000. What is the after-tax cost of

A firm has outstanding debt with a coupon rate of 7%, seven years maturity, and a price of $1,000. What is the after-tax cost of debt if the marginal tax rate of the firm is 35%? 4.55% 5.2% 3.56% 7.38%

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