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You know that the after-tax cost of debt capital for Crane is 20.3 percent. Assume that the firm has only one issue of five-year bonds

You know that the after-tax cost of debt capital for Crane is 20.3 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent. What isthe pre-tax cost of debt capital?

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