Question
A companys 6% coupon rate, semiannual payment, $1000 par value bond that matures in 20 years sells for $545. The companys marginal tax rate (state
A companys 6% coupon rate, semiannual payment, $1000 par value bond that matures in 20 years sells for $545. The companys marginal tax rate (state plus federal) is 35%. What is the firms after-tax cost of debt for the purposes of calculating WACC. ( 7.85% is correct answer)
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Financial Management Theory And Practice
Authors: Prasanna Chandra
11th Edition
9355322208, 978-9355322203
