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The net proceeds proceeds after flotation costs are 980 for

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Great Seneca Inc sells $100 million worth of 29 year to maturity 10.59% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The Firm's marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing?

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Finance Basics: The net proceeds proceeds after flotation costs are 980 for

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