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Lee Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $80 every six months. The bonds have a market

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Lee Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $80 every six months. The bonds have a market price of $920. Flotation costs on new debt will be 5%. If the firm is in the 35% marginal tax bracket, what is the posttax cost of new debt

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