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A Company has just issued $800 worth of debenture with a coupon rate of 15% per annum. The debenture is now trading at $2,200. Issue
A Company has just issued $800 worth of debenture with a coupon rate of 15% per annum. The debenture is now trading at $2,200. Issue cost has been determined at 5% of the face value. The Co. pays tax of 25% per annum. Calculate the cost of debt
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