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QUESTION 25 Assume: A before-tax cost of debt of 8% 40% Marginal tax rate What is the after tax cost of debt? A. 3.2% B.

QUESTION 25

Assume:

A before-tax cost of debt of 8%

40% Marginal tax rate

What is the after tax cost of debt?

A.
3.2%

B.
4.8%

C.
13.33%

D.
20%

E.
None of the above

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