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Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%, and the tax...

Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%, and the tax rate is 30%. If Danida's cost of equity is 12%, what is its pre-tax cost of debt?

Multiple Choice

  • 6.23%

  • 4.03%

  • 8.43%

  • 7.33%

  • 5.13%

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