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Given a firm with an interest rate on new debt of 13.5% and a marginal tax rate of 40%, calculate the firm's after-tax cost of

Given a firm with an interest rate on new debt of 13.5% and a marginal tax rate of 40%, calculate the firm's after-tax cost of debt.

Group of answer choices

13.5%

3.0%

8.1%

5.4%

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