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Tobin's Barbeque has a bank loan at 9% interest and an after-tax cost of debt of 4%. What will the after-tax cost of debt be

Tobin's Barbeque has a bank loan at 9% interest and an after-tax cost of debt of 4%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 14%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

6.22%

11.27%

3.67%

none of these

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