Reuven Corp. is undergoing major expansion. The expansion will be financed by issuing a new 12-year, $1,000

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Reuven Corp. is undergoing major expansion. The expansion will be financed by issuing a new 12-year, $1,000 par, 7% semiannual coupon bonds. The market price of the bonds is $940 each. Reuven's flotation expense on the new bonds will be $70 per bond. What is the pre tax cost of debt for the newly issued bonds?

Posted Date: May 20, 2024 06:04 AM

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Reuven Corp. is undergoing major expansion. The expansion will be financed by issuing a new 12-year, $1,000

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