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Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 7.30% for a period of seven years. Its marginal federal-plus-state tax rate is

Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 7.30% for a period of seven years. Its marginal federal-plus-state tax rate is 40%. PRCs after-tax cost of debt is (rounded to two decimal places).

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