A company with a marginal tax rate of 35% and a yield on any new debt issuance

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A company with a marginal tax rate of 35% and a yield on any new debt issuance of 8% has an after-tax cost of debt closest to:

A. 2.8%.

B. 5.2%.

C. 8.0%.

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Analysis Of Financial Statements

ISBN: 9781118299982

3rd Edition

Authors: Frank J. Fabozzi, Pamela Peterson Drake

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