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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

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 Laurel's effecthe (after-tax) cost of debt? NOIE Assirme that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest lax shield. The effective after-tix cost of debt is (Round to four decimal places.)

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