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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 38

Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % 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. The effective after-tax cost of debt is ???%. (Round to four decimal places.)

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