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Crane has determined that it could issue $1,000 face value bonds with an 8 percent coupon paid semiannually and a five-year maturity at $900

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Crane has determined that it could issue $1,000 face value bonds with an 8 percent coupon paid semiannually and a five-year maturity at $900 per bond. If Crane's marginal tax rate is 30 percent, its after-tax cost of debt is closest to: 7.2 percent. 7.6 percent. 7.4 percent. O 7.8 percent.

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