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Cisco plans to issue a $1,000 par value, 20-year noncallable bond with a 5% annual coupon, paid semiannually. The company's marginal tax rate is 30%,

Cisco plans to issue a $1,000 par value, 20-year noncallable bond with a 5% annual coupon, paid semiannually. The company's marginal tax rate is 30%, but Congress is considering a change in the corporate tax rate to 20%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted?

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