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Keys Printing plans to issue a $3,000 par value, 12-year noncallable bond with an 8% annual coupon, paid semiannually. The company's marginal tax rate is
- Keys Printing plans to issue a $3,000 par value, 12-year noncallable bond with an 8% annual coupon, paid semiannually. The company's marginal tax rate is 40%, but Congress is considering a change in the corporate tax rate to 11%. By how much (in percent) would the component cost of debt used to calculate the WACC change if the new tax rate was adopted?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
