Question
Firm X is calculating its WACC and wants to determine its cost of debt. It has 15 year 12% annual coupon bond selling for $1152.12.
Firm X is calculating its WACC and wants to determine its cost of debt. It has 15 year 12% annual coupon bond selling for $1152.12. What is the after tax cost of debt used in calculation of WACC? (T= 40%)
Its preferred stock which has $10 dividend per share is currently selling for $90.91. What is rate of preferred stock (kp)?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
