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QUESTION 4 To help finance a new plant, Roxxon, Inc. just sold a noncallable 20 year bond. This $1,000 par bond sells for $1,075 and

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QUESTION 4 To help finance a new plant, Roxxon, Inc. just sold a noncallable 20 year bond. This $1,000 par bond sells for $1,075 and has a 9.25% annual coupon, paid somiannually. Assume there are no floatation costs, and the firm's tax rate is 35%, what is the component after-tax cost of debt for use in the WACC calculation? a. 4.35% b.4.58% .4.83% d. 5,08% e. 5.50%

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