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ACT Inc. has a $1,000 (face value), 30-year bond issue selling for $719.90 that pays an annual coupon of 10.0 percent. Their marginal tax rate

ACT Inc. has a $1,000 (face value), 30-year bond issue selling for $719.90 that pays an annual coupon of 10.0 percent. Their marginal tax rate is 40%.

a. What would be BAT's current before-tax component cost of debt?

a. What would be BAT's current after-tax component cost of debt?

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