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Admiral Thrawn Inc. plans to issue a $1,000 par value, 10-year noncallable bonds with a 3% annual coupon. The company's current tax rate is 53%, but Congress is considering a change in the corporate tax rate to 11%. By how much would the component cost of debt used to calculate the WACC change (in percent) if the new tax rate was adopted?

Reference no: EM131736284

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