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The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 8.00% annual coupon
The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 8.00% annual coupon that is paid semiannually. The bond currently sells for $850 and the company's tax rate is 40%. What is the after-tax cost of debt for use in the WACC calculation?
answers:
4.16%
4.46%
4.79%
5.39%
5.83%
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