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A 10-year $1,000 bond sells for $980, and the flotation costs are 2% of the par value. The coupon rate is 8%. Put in the
A 10-year $1,000 bond sells for $980, and the flotation costs are 2% of the par value. The coupon rate is 8%. Put in the values of the variables and calculate the before-tax cost of capital from this bond? Coupon dollars (1) = Flotation costs in dollars (FC) = term (n) = Price (P) = Net proceeds (N_p) = Pa=
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