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A coupon has issued by B lTD has 5 years to maturity with a face value of $300000.Coupons of 12% are paid annually and the
A coupon has issued by B lTD has 5 years to maturity with a face value of $300000.Coupons of 12% are paid annually and the next coupon would be paid in 12 months time.The net proceeds associated with this issue would be $40,000.What is the after tax cost of debt given a corporate tax rate of 25%
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