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Laurel, Inc., has debt outstanding with a coupon rate of 6.1 % and a yield...

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Laurel, Inc., has debt outstanding with a coupon rate of 6.1 % and a yield to maturity of 7.1 %. Its tax rate is 25 %. What is Laurel's effective (after-tax) cost of debr? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. %. ( Round to four decimal places.) The effective after-tax cost of debt is

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