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Using the information in the two figures below and assuming that the risk free rate is 3.8% and the market risk premium is 7% and

Using the information in the two figures below and assuming that the risk free rate is 3.8% and the market risk premium is 7% and Ciena's tax rate is 25% estimate its pre-tax cost of debt.

Question 7 options:

	6.8%
	20.9%
	3.8%
	5.1%

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