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Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 9 years to maturity that is quoted

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 9 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 12 percent annually. Company's pretax cost of debt is percent. If the tax rate is 33 percent, the aftertax cost of debt is percent

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