=+d. In addition, the company can issue 100-par-value, 8% coupon, 10-year bonds that can be sold for
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=+d. In addition, the company can issue €100-par-value, 8% coupon, 10-year bonds that can be sold for €110 each. Flotation costs would amount to €2 per bond.
Use the estimation formula to figure the approximate cost of debt financing.
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Related Book For
Principles Of Managerial Finance
ISBN: 9781292261515
15th Global Edition
Authors: Chad J. Zutter, Scott Smart
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