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Your company has a pre-tax cost of debt of 6%. You anticipate the corporate tax rate will go from 21% to 28% in the near

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Your company has a pre-tax cost of debt of 6%. You anticipate the corporate tax rate will go from 21% to 28% in the near future. What impact will the tax change have on your debt cost of capital as an input to your overall cost of capital? Raise it by 0.42% Raise it by 1.40% No change Lower it by 0.42%

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