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A firm has outstanding debt with a coupon rate of 8%, seven years maturity, and a price of $1000 per $1000 face value. What is

A firm has outstanding debt with a coupon rate of 8%, seven years maturity, and a price of $1000 per $1000 face value. What is the after-tax cost of debt if the marginal tax rate of the firm is 35%?

A. 5.2%

B. 6%

C. 5.5%

D. 5.7%

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