Clifford, Inc., has a target debt-equity ratio of .95. Its WACC is 8.3 percent, and the tax rate is 23 percent. If the c

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answerhappygod
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Clifford, Inc., has a target debt-equity ratio of .95. Its WACC is 8.3 percent, and the tax rate is 23 percent. If the c

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Clifford, Inc., has a target debt-equity ratio of .95. Its WACC
is 8.3 percent, and the tax rate is 23 percent.
If the company’s cost of equity is 11 percent, what is its
pretax cost of debt? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
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