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Before-tax interest expense is 12% and the firm's marginal tax rate is 40%. What is the after-tax component cost of debt? a. 7.20% b. 7.2

  1. Before-tax interest expense is 12% and the firm's marginal tax rate is 40%. What is the after-tax component cost of debt?


    a.

    7.20%
    b.

    7.2 times
    c.

    17.4 times
    d.

    US$17.14

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