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The outstanding debt of Berstin Corp. has ten years to maturity, a current yield of 8%, and a price of $90. What is the pretax

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The outstanding debt of Berstin Corp. has ten years to maturity, a current yield of 8%, and a price of $90. What is the pretax cost of debt if the tax rate is 40%. Note: The current yield of a bond is its annual coupon divided by its price. A. 8% B. 5.24% C. 6.99% D. 8.74%

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