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A company's 6.0% coupon rate, semi-annual payment, $1,000 par value bond that matures in 30 years, sells at a price of $515.16. The company's federal
A company's 6.0% coupon rate, semi-annual payment, $1,000 par value bond that matures in 30 years, sells at a price of $515.16. The company's federal plus state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC(wght avg cost of capital)?(hint: base your answer on the nominal rate)
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