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Garnet, Inc., has a target debt-equity ratio of 0.45. Its WACC is 11.9 %, and the tax rate is 34 % If Garnet's cost of

Garnet, Inc., has a target debt-equity ratio of 0.45. Its WACC is 11.9 %, and the tax rate is 34 %

If Garnet's cost of equity is 16%, what is its pretax cost of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

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