paid $1,005.29 per bond and the flotation cost was $17.51 per bond. Pepsi's corporate tax rate is 21%. a. Ignoring flotation costs, what is Pepsi's before-tax and after-tax costs of debt? b. Considering flotation costs, what is Pepsi's before-tax and after-tax costs of debt?

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(Solved): paid $1,005.29 per bond and the flotation cost was $17.51 per bond. Pepsi's corporate tax rate is 21 ...

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