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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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