Question
A company's 8% annual coupon rate, semi-annual coupon payment, $1,000 Face Value bond has 30-years until maturity and is currently selling at a price =
A company's 8% annual coupon rate, semi-annual coupon payment, $1,000 Face Value bond has 30-years until maturity and is currently selling at a price = $775. The company's Federal income tax rate = 22%.
What is the firm's after tax component cost of debt for the purpose of calculating the WACC?
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Financial Management An Introduction
Authors: Jim McMenamin
1st Edition
0415181623, 9780415181624
