=+P92 Cost of debt using both methods Currently, Jackson Real Estate Inc. can sell 10-year, $100-par-value bonds

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=+P9–2 Cost of debt using both methods Currently, Jackson Real Estate Inc. can sell 10-year, $100-par-value bonds paying annual interest at a 6% coupon rate. Jackson can sell its bonds for $106.20 each. Jackson will incur flotation costs of $2.50 per bond in this process. The firm is in the 25% tax bracket.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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