Multiple Choice
A firm has a pre-tax cost of debt of 8.5%.If the firm has a marginal tax rate of 40%,what is its effective cost of debt?
A) 5.1%
B) 3.4%
C) 8.5%
D) 8.1%
E) 7.2%
Correct Answer:
Verified
Correct Answer:
Verified
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