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ABC Inc. can sell bonds with 20 years maturity, 10% coupon, and $1,000 Face Value...

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Accounting

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ABC Inc. can sell bonds with 20 years maturity, 10% coupon, and $1,000 Face Value for $850.61. What is the cost of bond financing (not adjusted for tax and flotation cost)? 8% 10% 20% 12% 11% ABC Inc. can sell bonds with 20 years maturity, 10% coupon, and $1,000 Face Value for $850.61. ABC Inc. pays 30% marginal tax. What is the after- tax cost of bond financing? 10% 3.6% 7% 12% 8.4% ABC Inc. can sell bonds with 20 years maturity, 10% coupon, and $1,000 Face Value for $850.61. ABC Inc. pays 30% marginal tax. The flotation cost of selling bonds is 2%. What is the after-tax cost of bond financing, including flotation cost? O 12.2649% 10.0000% 8.5854% O 12.2400% O 12.0000%

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