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Park Place Inc. can sell debt for $ 0 4 2 . 2 5 that pays a 8 % semi - annual coupon, and matures

Park Place Inc. can sell debt for $042.25 that pays a 8% semi-annual coupon, and matures in 20 years. A new issue of debt is subjeet to Notation costs of 4%. Park Place's tax rate is 40%.What is Park Place's after-tax cost of debt?

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