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debt can be issued at a yeild of 9 . 6 percent, and the corporate tax rate is 3 0 percent. preferred stock will be

debt can be issued at a yeild of 9.6 percent, and the corporate tax rate is 30 percent. preferred stock will be priced at $72 and pay a divident of $5.00 the flotation cost on the preferred stock is $6. compute the aftertax cost of debt and the aftertax cost of preferred stock

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