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Clifford, Inc., has a target debt-equity ratio of .75 . Its WACC is 8.6 percent, and the tax rate is 35 percent. If the company's

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Clifford, Inc., has a target debt-equity ratio of .75 . Its WACC is 8.6 percent, and the tax rate is 35 percent. If the company's cost of equity is 13 percent, what is its pretax cost of debt? 7.89% 6.23% 4.21% 5.02%

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