Question: A company s 6 percent coupon rate semiannual payment 1 000 par
A company’s 6 percent coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $515.16. The company’s marginal tax rate is 40 percent. What is the firm’s component cost of debt for purposes of calculating the WACC?
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