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Your firm has just issued a 20-year $1000 par value, 10% annual coupon bond for a net price of $984. Floatation costs are $15 per
Your firm has just issued a 20-year $1000 par value, 10% annual coupon bond for a net price of $984. Floatation costs are $15 per bond sold. Tax rate is 30%. What is the after-tax cost of debt? Please show any formulas used or values used if a financial calculator was used please to better help me understand and also to be awarded points. Thanks
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