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Question # 13 A company borrows funds at an interest rate of 6% and has a marginal federal tax rate of 22%. What is the

Question # 13

A company borrows funds at an interest rate of 6% and has a marginal federal tax rate of 22%. What is the company's after-tax cost of debt?

a. 1.3%

b. 4.7%

c. 16%

d. 20.7%

e. 28%

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