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Capital Travel Systems Ltd is in discussions with its investment bankers regarding the issuance of new bonds. The investment banker has informed the firm that
Capital Travel Systems Ltd is in discussions with its investment bankers regarding the issuance of new bonds. The investment banker has informed the firm that different maturities will carry different coupon rates and sell it different prices. the firm must choose among several alternatives. in each case, the bonds will have a R 1000-par value and flotation costs will be R30 per bond. The companies taxed at a rate of \30. Calculate the after-tax cost of financing for each of the following alternatives
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