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3. Please consider the following company items: Other items Tax rate Unlevered beta Target debt/equity ratio Bond rating 6.0% 3.0% 25% 0.60 0.30 BBB 2.0%
3. Please consider the following company items: Other items Tax rate Unlevered beta Target debt/equity ratio Bond rating 6.0% 3.0% 25% 0.60 0.30 BBB 2.0% 9.0% Market risk premium Risk free rate Small firm premium Credit spread debt Long term growth Long term ROCB 2.0% 1.5% What is the cost of debt of this company in percentages (%)? Please round your answer to one decimal place, use a period to indicate the decimal place and provide your answer without a percentage sign (e.g. 13.6 instead of 13.6%). 3. Please consider the following company items: Other items Tax rate Unlevered beta Target debt/equity ratio Bond rating 6.0% 3.0% 25% 0.60 0.30 BBB 2.0% 9.0% Market risk premium Risk free rate Small firm premium Credit spread debt Long term growth Long term ROCB 2.0% 1.5% What is the cost of debt of this company in percentages (%)? Please round your answer to one decimal place, use a period to indicate the decimal place and provide your answer without a percentage sign (e.g. 13.6 instead of 13.6%)
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