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Calculate the after-tax cost of a $25 million debt issue that Pullman Manufacturing Corporation (35% marginal tax rate) is planning to place privately with a

Calculate the after-tax cost of a $25 million debt issue that Pullman Manufacturing Corporation (35% marginal tax rate) is planning to place privately with a large insurance company. This long-term issue will yield percent to the insurance company. Round your answer to two decimal places.

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