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A firm has outstanding debt with a coupon rate of 9%, nine years maturity, and a price of $1000 per $1000 face value. What is the after-tax cost of debt if the marginal tax rate of the firm is 30%?

A) 4.9%

B) 6.3%

C) 5.8%

D) 5.9%

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  • Reference No.:- M945107

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