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( Cost of debt ) Carraway Seed Company is issuing a $ 1 , 0 0 0 par value bond that pays 8 percent annual
Cost of debt Carraway Seed Company is issuing a $ par value bond that pays percent annual interest and matures in years. Investors are willing to pay $ for the bond. Flotation costs will be percent of market value. The company is in a percent tax bracket. What will be the firm's aftertax cost of debt on the bond?
The firm's aftertax cost of debt on the bond will be
Round to two decimal places.
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