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Great Seneca Inc. sells $100 million worth of 23year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for

Great Seneca Inc. sells $100 million worth of 23year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1000 bond. The firm's marginal tax rate is 40%. What is the after- tax cost of capital for this debt financing?

Round answer to two decimal places in percentage form

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