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AFTER-TAX COST OF DEBT The Heuser Company's currently outstanding bonds have a 10% coupon and a 11% yield to maturity, Heuser believes it could issue

AFTER-TAX COST OF DEBT The Heuser Company's currently outstanding bonds have a 10% coupon and a 11% yield to maturity, Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is Heuser's after-tax cost of debt? Round to TWO decimal places.

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