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What is the pretax cost of debt

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OPW plc. has a cost of equity of 14.4 percent and an unlevered cost of capital of 13 percent. The company has £20,000 in debt that is selling at par value. The levered value of the firm is £46,000 and the tax rate is 35 percent. What is the pretax cost of debt?

Reference no: EM132705765

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