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A firm sold a noncallable bond several years ago and now has 20 years maturity. This bond is 9.25 annual coupon paid semiannually. Sells at
A firm sold a noncallable bond several years ago and now has 20 years maturity. This bond is 9.25 annual coupon paid semiannually. Sells at a price of $1075 has a par value of $1000. If the firms tax rate is 40% what is the component cost of debt after tax for use of WACC calculation
a 5.08%
b 6.81%,
c 5.9%
D 4.57%
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