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Question 4 (2 points) Oscorp Industries has a $50 million debt issue outstanding with a 7.0% coupon rate. The debt has annual coupons. The next

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Question 4 (2 points) Oscorp Industries has a $50 million debt issue outstanding with a 7.0% coupon rate. The debt has annual coupons. The next coupon is due in one year, and the debt matures in twenty years. It is currently priced at 95% of par value. If Oscorp faces a 20% tax rate, what is its after-tax cost of debt? 7.49% 4.36% 5.99% 5.00%

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