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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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