question archive The coupon rate on a debt issue is 6%

The coupon rate on a debt issue is 6%

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The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 10%. what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 35%? (Round your answer to 2 decimal places.)

5.15%

7.85%

6.50%

8.65%

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