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A firm has outstanding debt with a coupon rate of 7%, ten 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%, ten 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 25% ? A) 4.7% B) 5.5% C) 4.2% D) 5.3%

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