A recent merge and acquisition was financed with $100 million debt which includes $55 million...
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Accounting
A recent merge and acquisition was financed with $100 million debt which includes $55 million loan from Bank of America that has a 6 percent interest rate, $20 million unsecured debt borrowed at 7 percent interest rate from one financial institution, and a $25 million loan from the seller of the company that has an 8 percent interest rate. What is the overall after-tax cost of the debt if the firms marginal tax rate is 21%?
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