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Great Seneca Inc. sells 1 0 0 0 0 0 , 0 0 0 worth of 2 7 year to maturity 1 0 . 8

Great Seneca Inc. sells 100000,000 worth of 27 year to maturity 10.81% annual coupon bonds the net proceeds are $975 for each thousand dollar bond the firms marginal tax rate is 40% what is the after-tax cost of capital for the state financing

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