Question
To help finance a major expansion, a company sold a noncallable bond several years ago that now has 15 years to maturity. This bond has
To help finance a major expansion, a company sold a noncallable bond several years ago that now has 15 years to maturity. This bond has a 10.25% annual coupon, paid semiannually, it sells at a price of $985, and it has a par value of $1,000. If the companys tax rate is 10%, what component cost of debt should be used in the WACC calculation?
| A | 8.93% | |
| B | 9.41% | |
| C | 11.02% | |
| D | 12.33% |
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
