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Several years ago the Alpha Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon

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Several years ago the Alpha Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925, and the company's tax rate is 40%. What is the after-tax cost of debt for use in the WACC calculation? 7.7496 4.46% 3.87% 4.65% None of the above

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