Question
The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 15 years to maturity and a 7.00% annual coupon
The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 15 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $915 and the company's tax rate is 40%. What is the after-tax cost of debt for use in the WACC calculation?
- 4.16%
- 4.46%
- 4.79%
- 5.39%
- 5.83%
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
