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What is the cost of debt financing given the following information? A companys marginal tax rate of 36% and a loan interest rate of 11%?

What is the cost of debt financing given the following information? A companys marginal tax rate of 36% and a loan interest rate of 11%? (rounded to zero decimal places of a percent)

A. 7%

B. 5%

C. 12%

D. 9%

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