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The Montana Hills Co . has expected earnings before interest and taxes of $ 8 , 1 0 0 , an cost of equity of

The Montana Hills Co. has expected earnings before interest and taxes of $8,100, an cost of equity of 11%, and a cost of debt of 8%. The firm currently has 10,000 bonds with an annual 8% coupon. If the tax rate is 34%, what is the firms after-tax cost of debt?

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