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Laurel, Inc., has debt outstanding with a coupon rate of 5.9% and a yield to maturity of 6.8%. Its tax rate is 40% What is

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Laurel, Inc., has debt outstanding with a coupon rate of 5.9% and a yield to maturity of 6.8%. Its tax rate is 40% What is Laurer'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 % (Round to four decimal places)

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