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A company is considering the sale of 10-year notes with a total value of $10 million, an individual face value of $2,000, and a coupon

A company is considering the sale of 10-year notes with a total value of $10 million, an individual face value of $2,000, and a coupon interest rate of 8%. The debentures are selling for $1,850. Flotation costs: 5% per obligation Tax rate (taxes): 30% What is the cost of debt after taxes? (as a percentage with two decimal places) PROCEDURE BY HAND, DO NOT USE EXCEL

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