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Laurel, Inc, has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 7.1%. Its tax rate is 35%. What is

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Laurel, Inc, has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 7.1%. Its tax rate is 35%. What is Laure''s effective (after-tax) cos NOTE. Assume that the debt has annual coupons and that the firm will always be able to utilize its full interest tax shield The effective afler-tax cost of debt is 16. (Round to four decimal places.)

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