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Corporation X needs$1,000,000 and can raise this through debt at an annual rate of 10 percent, or preferred stock at an annual cost of 7

Corporation X needs$1,000,000 and can raise this through debt at an annual rate of 10 percent, or preferred stock at an annual cost of 7 percent. If the corporation has a 40 percent taxrate, the aftertax

cost of each is________.???

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