lee airlines plans to issue 15 year old bonds with a par value of $1.000 that will pay $80 every six months. The bonds have a market price of $920. Flotation on new debt will be 5%. if the firm is in the 35% marginal tax tax bracket, what is the posttax cost of the new debt?

12x+8-x=12x-x+8=11x+8=11

1.   an exact solution requires a radical solution - no decimal approximation.2. (a)4x^3 = 756x^3 = 756/4 = 189x =   cube root of 189 =   5.74   to nearest hundredth answer(b)   189 = 3*3*3*7   so we can write the cube root of 189 as 3∛7 answerchecking (a) 4*(5.74^3 =   756.48   which is very close(b)   4* ((3∛3)^3   = 4*189   = 756   - spot on! 3. i would use solution b because the original question asked for an exact solution.