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    Practical Financial Management Study Set 1
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    Exam 13: Cost of Capital
  5. Question
    With a Combined Federal and State Corporate Tax Rate of 40
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With a Combined Federal and State Corporate Tax Rate of 40

Question 117

Question 117

True/False

With a combined federal and state corporate tax rate of 40% and a market yield of 8% on long-term debt, the after-tax cost of debt is 3.20%.

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