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QP13.20 (Required for Submission) 20. Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of

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QP13.20 (Required for Submission) 20. Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,050. If the firm's tax bracket is 21%, what is its percentage cost of debt? (L013-4)

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