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Business, 29.07.2020 23:01 sonynwz8570

The firm could sell new $1,000 par value bonds with a 7.5% coupon rate and semiannual payments. The bonds would mature in 15 years. The bonds would sell at par, but flotation costs would amount to 3.5% of par value. The firm has a 21% marginal tax rate. What is the firm's cost of debt financing?

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The firm could sell new $1,000 par value bonds with a 7.5% coupon rate and semiannual payments. The...
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