Company E sells $1,000,000 of bonds at their face value. These are 10-year bonds, and...
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Accounting
Company E sells $1,000,000 of bonds at their face value. These are 10-year bonds, and have a stated interest rate of 8%. The flotation costs are $20,000. The applicable tax rate is 40%. Using this information, calculate the AFTER-TAX cost of debt for Company E. (If necessary, round your answer to the nearest one-hundredth of a percent)
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