g. Thus far, Volk has identified two future cash flows: (1) the net of new-issue flotation cost

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g. Thus far, Volk has identified two future cash flows: (1) the net of new-issue flotation cost tax savings and old-issue flotation cost tax savings that are lost if refunding occurs and (2) after-tax interest savings. What is the sum of these two semiannual cash flows? What is the appropriate discount rate to apply to these future cash flows? What is their present value?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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