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x company is issuing a $1,000 par value bond that pays 8.5% interest annually. Investors are expected to pay $1,100 for the 12-year bond. X

x company is issuing a $1,000 par value bond that pays 8.5% interest annually. Investors are expected to pay $1,100 for the 12-year bond. X company will pay $50 per bond in flotation costs. What is the after-tax cost of new debt if the firm is in the 35% tax bracket

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