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April 18, 2014

Homework Help: finance

Posted by kay on Thursday, February 24, 2011 at 2:14pm.

company issuing $1,000 par value bond that pays 7% annual interest maturing in 15 yrs. Investors willing to pay $958 for bond. Flotation cost 11% of market value and tax rate 18%. What will be theafter-tax cost of debt?

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