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ADK has 3 0 , 0 0 0 1 5 - year, 9 percent annual coupon bonds outstanding. If the bonds currently sell for 1

ADK has 30,00015-year, 9 percent annual coupon bonds outstanding. If the bonds currently sell for 111 percent of par and the firm pays an average tax rate of 21 percent, what will be the before-tax and after-tax
component cost of debt?
Mutiple Choice
774 percent, 6.11 percent
7.91 percent, 5.06 percent
8.05 percent, 5.15 percent
9 percent, 5 percent
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