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After- tax cost of capital for debt financing

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Reference no: EM131419909

Great Seneca Inc. sells $100 million worth of 23 year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1000 bond. The firm's marginal tax rate is 40%. What is the after- tax cost of capital for this debt financing?

Round answer to two decimal places in percentage form

Reference no: EM131419909

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