What is the after-tax cost of capital for this debt


Great Seneca Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 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?

Round the answer to two decimal places in percentage form.

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Financial Management: What is the after-tax cost of capital for this debt
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