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Great Seneca Inc.sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each

Great Seneca Inc.sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing?

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