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pbj is expanding is production. the expansion will be financed by issueng new 25- year, $1000 par, 10.25% issuel coupon bonds paid semiannually. the market
pbj is expanding is production. the expansion will be financed by issueng new 25- year, $1000 par, 10.25% issuel coupon bonds paid semiannually. the market annual of each bond is $975. flotation expense on the new bonds will be $30 per bond. pbj's marginal tax rate is 38%. what is the after tax cost of debt for the newly issued bonds?
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