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The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 10%, what is the after-tax cost of

The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 10%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 31%?

A.5.55%

B.8.25%

C.6.90%

D.9.05%

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A Survey of Mathematics with Applications

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