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- Royan Industries decide to expand its business and RM45,000,000 worth of external funds need to be raised. One alternative source of financing is to

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- Royan Industries decide to expand its business and RM45,000,000 worth of external funds need to be raised. One alternative source of financing is to issue a 7% bond that will mature in 10 years. The firm is planning to sell the bonds at 6% discount. The current tax bracket of the firm is 30%. What is the cost of bond? K=

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