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Blake holds a 5% interest-bearing debt instrument in Day Co. Day Co.'s tax rate is 27% and Blake is in a 50% tax bracket. Required:

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Blake holds a 5% interest-bearing debt instrument in Day Co. Day Co.'s tax rate is 27% and Blake is in a 50% tax bracket. Required: A) Calculate the after-tax cost of the debt-instrument to Day Co. B) Calculate the after-tax value of the interest for Blake

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