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Your company is going to issue a par bond with 8% coupon rate. Suppose you predict the corporate tax next year will increase from current
- Your company is going to issue a par bond with 8% coupon rate. Suppose you predict the corporate tax next year will increase from current 35% to 40%. How much will this change in tax rate influence the component cost of debt used in the WACC calculation?
0.50%
0.40%
0.80%
0.70%
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
