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KatyDid clothes has a $150 million (1,000 face value) 15 year-bond issue selling for 106 percent...

KatyDid clothes has a $150 million (1,000 face value) 15 year-bond issue selling for 106 percent of par that carries a coupon rate of 8 percent, paid semiannually. What would be KatyDid’s before-tax component cost of debt?

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