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A firm has outstanding debt with a coupon rate of 8.00% (coupons paid semi- annually),...

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A firm has outstanding debt with a coupon rate of 8.00% (coupons paid semi- annually), seven years maturity, $1,000 face value, and a price of $1,020. What is the After-Tax Cost of Debt if the marginal tax rate of the firm is 35%? O A) 7.63% B) 5.45% C) 6.00% D) 4.96% E) 8.38%

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