Question
A company's 5% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $571.02. The company's federal-plus-state
A company's 5% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $571.02. The company's federal-plus-state tax rate is 25%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal annual rate.) Round your answer to one decimal place.
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
