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Keys Printing plans to issue a $1,000 par value, 10-year noncallable bond with a 7.40% annual coupon, paid semiannually. The company's marginal tax rate is

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Keys Printing plans to issue a \$1,000 par value, 10-year noncallable bond with a 7.40\% annual coupon, paid semiannually. The company's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 25.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Do not round your intermediate calculations. a. 0.284 b. 0.50m c. 1.114 d. 0.194 222%

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