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Intro Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 6% and a face value of $1,000 for $1,247.92.
Intro Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 6% and a face value of $1,000 for $1,247.92. The company will incur flotation costs of $40 per bond and has a tax rate of 28% Attempt 1/5 for 10 pts. Part 1 What are the net proceeds from selling the bond? No decimals Submit Attempt 1/5 for 10 pts. E Part 2 What is the company's pre-tax cost of debt? 3+ decimals Submit Attempt 1/5 for 10 pts. Part 3 What is the company's after-tax cost of debt? 3+ decimals Submit
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