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A corporation can sell new 20-year bonds at a price of $940 after flotation costs. The bonds will carry a 6% coupon rate (annual pay),
A corporation can sell new 20-year bonds at a price of $940 after flotation costs. The bonds will carry a 6% coupon rate (annual pay), and the company's tax rate is 40%. Determine the after-tax cost of debt (to the nearest tenth of a percent)
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