Question 2(1 point) Great Seneca Inc.sells $100 million worth of 23-year to maturity 14.94% annual coupon bonds.

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Question 2(1 point)

Great Seneca Inc.sells $100 million worth of 23-year to maturity 14.94% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $977 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form.(Write the percentage sign in the "units" box)

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Posted Date: May 19, 2024 06:04 AM

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Question 2(1 point) Great Seneca Inc.sells $100 million worth of 23-year to maturity 14.94% annual coupon bonds.

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