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To help finance a major expansion, a company sold a noncallable bond that has 15 years to maturity. This bond has a 5.25% annual coupon,
To help finance a major expansion, a company sold a noncallable bond that has 15 years to maturity. This bond has a 5.25% annual coupon, paid semiannually, it sells at a price of $935, and it has a par value of $1,000. If the companys tax rate is 10%, what is the after-tax component cost of debt that is used in the WACC calculation?
8.93%
9.41%
5.91%
5.32%
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