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Suppose a company could issue 9 % coupon, 2 0 - year debt with a face value of $ 1 , 0 0 0 for

Suppose a company could issue 9% coupon, 20-year debt with a face value of $1,000 for
$980. Suppose further that flotation costs will amount to $19.60. The tax rate is 40%.
Find the after-tax cost of debt.
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