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Compute the cost of long-term debt for the weighted average cost of capital when the pre-tax cost is 9,4% and the company's tax rate is

  1. Compute the cost of long-term debt for the weighted average cost of capital when the pre-tax cost is 9,4% and the company's tax rate is 40%.

    1. 5,64%

    2. 4.70%

    3. 6.2%

    4. 3.76%

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