Question
Determine the cost of a corporate bond issue that is used to calculate the WACC, if: 1) the sale price of the bond is $
Determine the cost of a corporate bond issue that is used to calculate the WACC, if:
1) the sale price of the bond is $ 960.00
2) the annual coupon is $ 60
3) the issuance costs are $ 8.50 per bond
4) the bond expires in 20 years
5) the tax liability of the Corporation is 35%
| 4.0% | ||
| 6.4% | ||
| 4.2% | ||
| 6.0% |
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Financial Trading And Investing
Authors: John Teall
1st Edition
0123918804, 978-0123918802
