A company has a debt of $2 million that has an interest rate of 6% per annum.
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A company has a debt of $2 million that has an interest rate of 6% per annum. The company plans to issue a new bond with a face value of $1 million and an annual coupon rate of 8%. The new bond will have a maturity of 5 years. What will be the company's weighted average cost of capital (WACC) after issuing the new bond?
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Related Book For 
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
Posted Date:
