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From a WACC calculation prepared for you by a consultant, you find that their estimation of the after tax cost of debt is 6%. Given

From a WACC calculation prepared for you by a consultant, you find that their estimation of the after tax cost of debt is 6%. Given a tax rate of 40% and a WACC of 15%, what must have been the cost of debt before adjusting for taxes?

a.) 10%

b.) 6%

c.) 2.4%

d.) 15%

e.) 3.6%

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