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Portentious Door Company has outstanding corporate debt paying a 5% semi-annual coupon, with a current yield to maturity of 6%. If the firms tax rate

Portentious Door Company has outstanding corporate debt paying a 5% semi-annual coupon, with a current yield to maturity of 6%. If the firms tax rate is 15%, what is its effective cost of debt?

A. 4.255

B. 6%

C. 5.5%

D. 5.1%

E. 5%

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