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A QUESTION 3 A corporation borrows $ 1 , 0 0 0 , 0 0 0 at 1 0 percent annual rate of interest. The

A QUESTION 3
A corporation borrows $1,000,000 at 10 percent annual rate of interest. The firm has a 21 percent tax rate. The yearly, after-tax cost of this debt is q,
$100,000
$79,000
$126,582
$21,000a
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