QUESTION 1 What is the before-tax cost of debt if ABC issues 20-year bonds that pay $35 every six months if the bonds are sold for $1,000 each, and if the flotation cost is $25 per bond? For 1-17 assume that ABC's capital structure consists of 35% debt, 15% preferred, and 50% common. The firm is in the 20% tax bracket. O 7.1% 7.69 O 7.45 O 7.24 1 points Sav

What is the before-tax cost of debt if ABC issues 20 year bonds that pay $35 every six months if the bonds are sold for $1,000 each, and if the fiotation cost is $25 per bond? For 1.17 assume that ABC's capital structure consists of 35% debt 15% preferred, and 50% common. The firm is in the 20% tax bracket. 7.1%7.697.457.24