​(Cost of debt​) Sincere Stationery Corporation needs to raise ​$ to improve its manufacturing plant. It has decided to issue a ​$ par value bond with an annual coupon rate of percent and a maturity of years. The investors require a rate of return of percent. a. Compute the market value of the bonds.
b. What will the net price be if flotation costs are percent of the market​ price?
c. How many bonds will the firm have to issue to receive the needed​ funds?
d. What is the​ firm's after-tax cost of debt if its marginal tax rate is ​percent?
e. Rework the problem as​ follows: Assume a coupon rate of percent.  
f. What effect does changing the coupon rate have on the​ firm's after-tax cost of​ capital? Why is there a​ change?