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ABC Corp . is undergoing a major expansion The expansion will be financed by issuing new 14 - year $1 090 par 8 090 annual

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ABC Corp . is undergoing a major expansion The expansion will be financed by issuing new 14 - year $1 090 par 8 090 annual coupon bonds . The market price of the bonds is $990 each Flotation expense on the new bonds will be $50 per bond . The marginal tax te is 3596 What i What is the pre - tax cost of debt for the newly - issued hands

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