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

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?8.43%7.33%6.23%5.13%4.03%

 

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