Home Depot has debt outstanding with a face value of $40 billion. The coupon rate on these

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Home Depot has debt outstanding with a face value of $40 billion. The coupon rate on these bonds is

5.7%.

The current yield-to-maturity (YTM) on these bonds is

7.8%.

Home Depot’s tax rate is

30%.

What is the effective cost of debt of HomeDepot?

Related Book For answer-question

Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: Feb 29, 2024 11:25 PM

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Home Depot has debt outstanding with a face value of $40 billion. The coupon rate on these

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After tax cost of debt can be calcula... View the full answer

Corporate Finance Core Principles And Applications

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