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What is the before-tax cost of debt of a company

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Question - What is the before-tax cost of debt of a company's new bond that has a coupon rate of 8% with annual coupons, a maturity of 20 years, and a par value of $1,000? The new bond can be sold to the public at $1,080.47 but the company must pay a flotation cost of $40 per bond to sell it.

Reference no: EM133162351

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