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Use the information below to determine before-tax cost of debt financing of bond T. Selling Price of the Bond: $1181 Number of Years to Maturity:

Use the information below to determine before-tax cost of debt financing of bond T.

Selling Price of the Bond: $1181

Number of Years to Maturity: 20

Annual Coupon Rate (paid annually): 10.59%

Par value: 1000

Floatation Costs: $2.51

What is the Before Tax Cost of Debt Financing Percentage?

Please show formula, how to solve and answer? Thank you!

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