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44. Chapter MC, Section .10, Problem 073.Algo To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now
44. Chapter MC, Section .10, Problem 073.Algo To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.50% annual coupon, paid semiannually, sells at a price of $950, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations. Oa. 7.56% Ob. 10.09% Oc. 7.73% Od. 4.24% Oe. 5.04%
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