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If Jones Co. can borrow at an interest rate of 8% and its marginal federal-plus-state tax rate is 35%, what is its after tax cost

If Jones Co. can borrow at an interest rate of 8% and its marginal federal-plus-state tax rate is 35%, what is its after tax cost of debt?

a

5.2%
b

5.8%
c

6.3%
d

3.5%

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