The company currently has outstanding a bond with a 5.5 percent coupon rate and another bond with a 3.5 percent coupon rate. The firm has been informed by its investment banker that bonds of equal risk and credit rating are now selling to yield 6.5 percent. The optimum capital structure is 35 percent debt. what is the weighted cost of debt

Answer rating: 100% (QA)

To calculate the weighted cost of debt we need to consider the coupon rates and the proportions of e... View the full answer