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Andalusian Limited (AL) can borrow funds at an interest rate of 12.50% for a period of four years. Its marginal federal-plus-state tax rate is 45%.

Andalusian Limited (AL) can borrow funds at an interest rate of 12.50% for a period of four years. Its marginal federal-plus-state tax rate is 45%. ALs after-tax cost of debt is ?????? (rounded to two decimal places).

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