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a) If the flotation cost is $30 per bond and the tax rate is 34%, yield to maturity is 7.61%, what is the cost of
a) If the flotation cost is $30 per bond and the tax rate is 34%, yield to maturity is 7.61%, what is the cost of new debt financing based on current market prices after taxes? (You can use the rate formula in excel to find Kd)
b) What is the investors required rate of return for Axelons common stock?
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