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The outstanding debt of Berstin Corp. has ten years to maturity, a current yield of 7%, and a price of $80. What is the pretax

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The outstanding debt of Berstin Corp. has ten years to maturity, a current yield of 7%, and a price of $80. What is the pretax cost of debt if the tax rate is 35%. Note: The current yield of a bond is its annual coupon divided by its price. O A. 7% B. 5.2% OC. 6.94% OD. 8.67%

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