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(Cost of debt) Sincere Siationery Corporation needs to raise $600.000 to improvo its manufacturing plant. It has decided to issiug a 51.000 par Valtae band

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(Cost of debt) Sincere Siationery Corporation needs to raise $600.000 to improvo its manufacturing plant. It has decided to issiug a 51.000 par Valtae band with an arnual coupon rate of 17 petcent and a maturity of 17 years. The ivestors require a rate of retum of 7 percent. a. Compute the market value of the bonds: b. What wil the net price be it fletation costs are 13 porcent of the market price? c. How many bonds will the frm tave to issue to recoive the rieoded funds? d. What is the firm's atter-tax cost of debt if its ayerago tax rate is 25 percent and its marginal tax rate is 32 porcent

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