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Laurel , Inc, has debt outstanding with a coupon rate of 62% and a yield to maturity of 6.8% Its tax rate is 38% What

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Laurel , Inc, has debt outstanding with a coupon rate of 62% and a yield to maturity of 6.8% Its tax rate is 38% What is Laurel's effective after-tax) cost of debt? NOTE: Assume that the debt has annual coupons Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is 1% (Round to four decimal places.)

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