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Tobin's Barbeque has a bank loan at 10% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be

Tobin's Barbeque has a bank loan at 10% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 12%.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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