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Answer all parts Please What do lenders require, and what kind of debt costs the company? The cost of debt that is relevant when companies

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What do lenders require, and what kind of debt costs the company? The cost of debt that is relevant when companies are evaluating new investment projects as the marginal cost of the new debt to be raised to finance the new project Consider the case of Red Oyster Seafood Compary Red Oyster): Red Oyster Seafood Company is considering issuing a new 25-year des that would be an annual coupon payment of $95. Each bond in the issue would carry a $1,000 par value and would be expected to be said for a price equal to its per value will be Red Oyster's CFO has pointed out that the firm would incur a flotation cost of the initially suing the bond issue. Remember the flotation costs the proceeds the firm will receive after nodig is new bonds. The firm's marginal federal-plus-state tax rate 20% To see the effect of flotation conts on Red Oysters after-tax cost of dete (generic. caeculate the after to cont of the firm's debe innue with and without its Potation costs, and select the correct after-tax costs in percentage for After-tax cost of debt without ftation cost Aver-tax cost of debt with otion cost This is the cost of debt and it is different from the cost of case in the past NacBook Air ** E88 go 73 & ! . # 3 S 4 % 5 & 7 . 6 8 9 W E R T Y U 0 S D F G H J L K > C V B N M H

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