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Great Seneca Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $989 for
Great Seneca Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $989 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form
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