Brown Industries can sell 15 years, $1000 par value bonds paying annual interest at 12% coupon rate.  The bonds can be sold for $1000 each, the flotation cost of $30 per bond will be incurred in this process.  The firm is in the 40% tax bracket.   i)             Compute the before tax cost of debt.   ii)            Compute the after tax cost of debt.   NB. Showing workings. No use of Excel!

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