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ABC Co. has 26 million shares outstanding trading at $18 per share. ABC also has $157 million in outstanding debt. ABC has equity beta of
ABC Co. has 26 million shares outstanding trading at $18 per share. ABC also has $157 million in outstanding debt. ABC has equity beta of 2. The expected market return is 7.5% and the risk-free rate is 0.9%. Given that ABC has return on assets of 11.7%, find its cost of debt d%. How much is d? Round your answer to the nearest integer (no decimal places).
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