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Tangshan Mining Corporation is considering issuing long-term debt.
$ 10.00

Tangshan Mining Corporation is considering issuing long-term debt. The debt would have a 30 year maturity and a 10 percent coupon rate. The firm would have to pay flotation costs of 10 percent of $1000 face value. The bond is currently selling at face value. The firm's tax rate is 35 percent. Given this information, the after tax cost of debt for Tangshan Mining Corporation would be

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