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The Cost of Debt and Flotation Costs. Suppose a company will issue new 2 5 - year debt with a par value of $ 1
The Cost of Debt and Flotation Costs.
Suppose a company will issue new year debt with a par value of $ and a coupon rate of paid annually. The issue price will be $ The tax rate is If the flotation cost is of the issue proceeds, then what is the aftertax cost of debt? Round your answer to two decimal places.
What if the flotation costs were of the bond issue? Round your answer to two decimal places.
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