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Business, 10.05.2021 21:10 kay4451

CosaNostra Pizzais undergoing a major expansion. The expansion will be financed by issuing new 30-year, $1,000 par, 10% semiannual coupon bonds. The market price of the bonds is $1,020each. Flotation expense on the new bonds will be $70per bond. The marginal tax rate is 35%. What is the post-tax cost of debt for the newly-issued

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