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can someone answer this asap please! The Cost of Debt and Flotation Costs. Suppose a company will issue new 20-year debt with a par volue
can someone answer this asap please!
The Cost of Debt and Flotation Costs. Suppose a company will issue new 20-year debt with a par volue of $1,000 and a coupon rate of 9%, paid annually. The issue price will be 31,000. The tax futa is 25\$. If the flotation cost is 496 of the issue proceeds, then what is the after-tax cost of debt? Round your answer to two decimal piach. What if the flotation costs were 12% of the bond issue? Round your answer to two decimal places Step by Step Solution
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