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BG Company has outstanding a series of $1,000 par value, 8% coupon bonds that mature in 11 years. The bonds currently sell for $895. BG's

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BG Company has outstanding a series of $1,000 par value, 8% coupon bonds that mature in 11 years. The bonds currently sell for $895. BG's current tax rate is 45%. What is BG's after-tax (component) cost of debt? O a. 4.07% O b.5.27% c.7.42% d. 8.00% e. 9.59%

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