Question
Long-Term debt 7,514,000 represents Costco's 6% coupon rate, semi-annual payment, $1,000.00 par value bonds that mature in 30 years and sell at a price of
Long-Term debt 7,514,000 represents Costco's 6% coupon rate, semi-annual payment, $1,000.00 par value bonds that mature in 30 years and sell at a price of $515.16. The company's tax rate is 25%. What is Costco's after-tax component cost of debt for purposes of calculating the WACC?
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Handbook Of Corporate Equity Derivatives And Equity Capital Markets
Authors: Juan Ramirez
1st Edition
1119975905, 978-1119975908
