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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 44%? (Round your answer to 2 decimal places.)

Multiple Choice

5.60%
4.25%
6.95%
7.75%

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