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Faber Enterprises can issue 10-year debt with an annual coupon rate of 9.50% (semiannual payments) at its par value of $1000. The flotation costs will

Faber Enterprises can issue 10-year debt with an annual coupon rate of 9.50% (semiannual payments) at its par value of $1000. The flotation costs will be 4% of the value of the issue and the companys tax rate is 25%. What is the after-tax cost of debt for purposes of computing WACC?

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