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Mojang Studios is looking to invest in a new project but lacks the liquidity required to do so. The company initially has a D/E ratio

image text in transcribed Mojang Studios is looking to invest in a new project but lacks the liquidity required to do so. The company initially has a D/E ratio of A, with Equity of Book Value $B. All of Mojang's Debt is in the form of outstanding zero-coupon bonds that sell for C\% of par and have D years till maturity. To obtain liquity, Mojang issues E F\% semi-annual coupon bonds that will mature in G years. These coupon bonds sell at H% of par. All bonds have a par value of $1000. The company's tax rate is 1%. Given this information, (a) Calculate the total Market Value of Majong's Debt then (b) Calculate the after tax cost of debt

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