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The firm can sell a 5-year $1000 par value bond, an 8% coupon interest rate paid semi-annually for $1.050. a flotation cost of 2% of

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The firm can sell a 5-year $1000 par value bond, an 8% coupon interest rate paid semi-annually for $1.050. a flotation cost of 2% of par value would be required in addition to the premium of $50. the tax rate is 30% calculate the following Cost of debt before tax 8.27% cost of debt after tax 11.8%

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