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The Western Glass Company's currently outstanding bonds have a 12% coupon and a 10% yield to maturity. The Western believes it could issue new bonds

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The Western Glass Company's currently outstanding bonds have a 12% coupon and a 10% yield to maturity. The Western believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Western's after-tax cost of debt? o 7.8% o 6.5% 10.0% 12.0% None

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