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QUESTION 11 Lowells inc plans to issue a $1,000 par value, 20-year noncallable bond at a yield of 5%. The company's marginal tax rate is

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QUESTION 11 Lowells inc plans to issue a $1,000 par value, 20-year noncallable bond at a yield of 5%. The company's marginal tax rate is 30.00%, but Congress is considering a change in the corporate tax rate to 20.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? 0.5% -0.5% 0.0% -0.6%

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