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a Laurel, Inc. has debt outstanding with a coupon rate of 6 2% and a yield to maturity of 7.2%. Its tax rate is 38%

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a Laurel, Inc. has debt outstanding with a coupon rate of 6 2% and a yield to maturity of 7.2%. Its tax rate is 38% What is Laurels effective after-tax) cost of debt? NOTE: Assume that the debt has annual coupons Note: Assume that the firm will always be able to utilize its full interest tax shield The effective after-tax cost of debt is 5% (Round to four decimal places)

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