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Can you show and explain the question? DL Trucking has a cost of equity of...

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Finance

Can you show and explain the question? DL Trucking has a cost of equity of 15.4 percent and an unlevered cost of capital of 13.2 percent. The company has $24,000 in debt that is selling at par value. The levered value of the firm is $59,000 and the tax rate is 34 percent. What is the pretax cost of debt?

9.69%

8.34%

8.75%

9.20%

7.38%

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