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Alpha has an outstanding bond issue that has a 7% semiannual coupon, a current maturity of 20 years, a face value of $1000, and sells
Alpha has an outstanding bond issue that has a 7% semiannual coupon, a current maturity of 20 years, a face value of $1000, and sells for $967.97. The firm's income tax rate is 35%. What should Alpha use as an after-tax cost of debt for cost of capital purposes? O None of them O 4.38% O 8.15% 0 4.75% O 4.42%
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