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a. What is Avicorp's pretax cost of debt? b. If Avicorp faces a 40% tax...

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a. What is Avicorp's pretax cost of debt? b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. The cost of debt is % per year. (Round to two decimal places.)

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